Simon Mirzokandov pays $16.1M for retail in Brighton Beach

Simon Mirzokandov through the entity National Mini Mall, LLC paid $16.1 million to Pyotr Yadgarov through the entity Brighton Tema LLC for the retail building (K2) at 273 Brighton Beach Avenue in Brighton Beach, Brooklyn.
The deal closed on November 8, 2023 and was recorded on November 29, 2023. The property has 19,686 square feet of built space and 4,599 square feet of additional air rights for a total buildable of 24,297 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $817 and the price per buildable square foot is $662 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on May 23, 2019, for $6 million. The signatory for Pyotr Yadgarov was Pyotr Yadgarov. The signatory for Simon Mirzokandov was Simon Mirzokandov. The contract date was April 5, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Simon Mirzokandov had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Pyotr Yadgarov purchased three properties in one transactions for a total of $2 million and had not sold any properties over the same time period.

The property

The retail building in Brighton Beach has 19,686 square feet of built space and 4,599 square feet of additional air rights for a total buildable of 24,297 square feet according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 140 feet deep with a total lot size of 9,999 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.7 million. The most recent loan totaled $5.1 million and was provided by W Financial on March 23, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $855 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial rehab certificate of occupancy on June 29, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Brighton Beach, The majority, or 58 percent of the 7.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 12 percent of the space. In sales, Brighton Beach has had very little sales volume relative to other neighborhoods with $109.5 million in sales volume in the last two years. For development, Brighton Beach has had very little major development activity relative to other neighborhoods.It had 153,726 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 15 commercial properties representing 33,407 square feet of the 60,125 square feet. The largest owner is Pyotr Yadgarov, followed by Michael I. Geylik and then Buland Madan.
On the tax block, there was one new building construction project filed totaling 12,950 square feet. It is a 19-unit, 12,950 square-foot residential (R-2) building submitted by Alex Kogan with plans filed September 20, 2021 and permitted April 27, 2022.

The majority, or 49 percent of the 60,125 square feet of built space are retail buildings, with mixed-use buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Pyotr Yadgarov owned at least five commercial properties in New York City with 36,265 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.1 million in debt, borrowed from W Financial. Within the portfolio, the bulk, or 76 percent of the 36,265 square feet of built space are retail properties, with industrial properties next occupying 15 percent of the space. They are all located in Brooklyn.

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