Slope Asset Management pays $5.4M for two mixed-use buildings in South Slope

Slope Asset Management, with the signatories of investors Ariel Akkad and Arya Zand, paid $5.4 million to John Hatzipetros for adjacent mixed-use buildings in South Slope, Brooklyn, in two separate transactions. These are the second and third buildings from the corner at 12th Street, but not the corner building, which is 500 5th Avenue.
In the first, Slope Asset Management through the entity 502 Fifth Ave Management, LLC paid $2.7 million to John Hatzipetros through the entity Kappa Properties NY, LLC for the two-unit mixed-use building (S2) at 500A 5th Avenue in South Slope, Brooklyn.
The deal closed on January 5, 2023 and was recorded on January 20, 2023. The property has 3,600 square feet of built space and 1,200 square feet of additional air rights for a total buildable of 4,800 square feet according to PincusCo analysis of city data. The sale price per built square foot is $750 and the price per buildable square foot is $562 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 signatory for John Hatzipetros was John Hatzipetros. The signatories for Slope Asset Management were Ariel Akkad and Arya Zand. Arya Zand is a signatory on the loan, not on the deed transfer.

In the second transaction, Slope Asset Management through the entity 502 Fifth Ave Management LLC paid $2.7 million to John Hatzipetros through the entity 502 Fifth Realty, LLC for the two-unit mixed-use building (S2) at 502 5th Avenue in South Slope, Brooklyn. The deal closed on January 5, 2023 and was recorded on January 20, 2023. The property has 3,600 square feet of built space and 1,200 square feet of additional air rights for a total buildable of 4,800 square feet according to PincusCo analysis of city data. The sale price per built square foot is $738 and the price per buildable square foot is $554 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 January 10, 2007, for $1.2 million. The signatory for John Hatzipetros was John Hatzipetros. The signatories for Slope Asset Management were Ariel Akkad and Arya Zand. Arya Zand is a signatory on the loan, not on the deed transfer.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Slope Asset Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller John Hatzipetros had not purchased any other properties and had not sold any properties over the same time period.

The property

The 500A 5th Avenue parcel has frontage of 20 feet and is 80 feet deep with a total lot size of 1,600 square feet. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation, $2,500 in ECB penalties, and $2,500 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In South Slope, the bulk, or 47 percent of the 4.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, South Slope has near average sales volume among other neighborhoods with $346.1 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 255,677 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 24 commercial properties representing 125,741 square feet of the 203,012 square feet. The largest owner is Tony DiPiazza, followed by Greenbrook Partners and then Delshah Capital.
On the tax block, there were two new building construction projects totaling 45,408 square feet. The largest is a 44-unit, 40,207-square-foot R-2 building developed by Mario Procida with plans filed July 6, 2021 and it has not been permitted yet.The second largest is a four-unit, 5,201-square-foot R-2 building developed by Zafaranloo Cyrus with plans filed August 10, 2018 and permitted May 14, 2019.

The majority, or 82 percent of the 203,012 square feet of built space are walkup buildings, with mixed-use buildings next occupying 13 percent of the space.

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