TN-based SRM Concrete pays $12.5M for industrial in Brownsville

Tennessee-based SRM Concrete through the entity Hollingshead Materials LLC paid $12.5 million to Almar Supplies through the entity New Ditmas Realty LLC for the industrial building (F2) at 9814 Ditmas Avenue in Brownsville, Brooklyn.
The deal closed on April 5, 2024 and was recorded on May 3, 2024. The property has 9,435 square feet of built space and 45,272 square feet of additional air rights for a total buildable of 54,545 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,324 and the price per buildable square foot is $229 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 November 25, 2022, for $18.1 million. The signatory for Almar Supplies was Rossana Bortone. The signatory for SRM Concrete was Jeff Hollingsworth. The contract date was February 28, 2024. SRM Concrete is based in Smyrna, TN.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer SRM Concrete had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Almar Supplies had not purchased any other properties and had not sold any properties over the same time period. The 9,435-square-foot property generated revenue of $354,097 or $38 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Brownsville has 9,435 square feet of built space and 45,272 square feet of additional air rights for a total buildable of 54,545 square feet according to a PincusCo analysis of city data. The parcel has frontage of 252 feet and is 318 feet deep with a total lot size of 54,545 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2 million.

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 not received any significant violations in the last year.

Development

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 Brownsville, The bulk, or 46 percent of the 28.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has had very little sales volume relative to other neighborhoods with $203.5 million in sales volume in the last two years. For development, Brownsville has 1.5 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.7 million 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. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 79,338 square feet of the 250,423 square feet. The two identified owners are Prime Group Holdings and LIRR.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 250,423 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.