United Construction & Dev, Ki Tai Yeung pay $21.4M for two properties in Sunset Park

Developer Chris Jiashu Xu’s United Construction & Development Group and Ki Tai Yeung through the entity Six Avenue Holdings LLC paid $21.4 million to Frank Wong through the entity Wong Brothers’ Realty Inc. for industrial building at 6201 6th Avenue in Sunset Park, Brooklyn and midblock development building on 6th Avenue in Sunset Park, Brooklyn. Xu is a well-known developer so it is likely this is a land sale.
The deal closed on May 26, 2022 and was recorded on June 22, 2022. The two properties have 73,950 square feet of built space and 44,658 square feet of additional air rights for a total buildable of 118,860 square feet according to PincusCo analysis of city data. The sale price per built square foot is $289 and the price per buildable square foot is $180 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 Frank Wong was Frank Wong. The signatory for United Construction & Development and Ki Tai Yeung was Jiashu Xu and Ki Tai Yeung. Frank Wong retained partial ownership of the property.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 6201 6th Avenue.

Prior sales and revenue

The PincusCo database currently indicates that United Construction & Development Group owned at least 12 commercial properties with 850,016 square feet, 314 residential units and a city-determined market value of $124 million. (Market value is typically about 50% of actual value.) The portfolio has $377.5 million in debt, with top three lenders as Bank of China, Centennial Bank, and Bank Leumi respectively. Within the portfolio, the bulk, or 49 percent of the 850,016 square feet of built space are office properties, with elevator properties next occupying 36 percent of the space. They are all located in Queens.

The seller Frank Wong had not purchased any other properties and had not sold any properties over the same time period. Out of the two properties, one with a total of 73,950 square feet of built space generated revenue of $1.4 million per year.

The property

The 6201 6th Avenue parcel has frontage of 230 feet and is 280 feet deep with a total lot size of 57,970 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $6.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $3,125 in ECB penalties and $3,125 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 Sunset Park, the bulk, or 28 percent of the 49.6 million square feet of commercial built space are 1-4 family buildings, with industrial buildings next occupying 21 percent of the space. In sales, Sunset Park has 1.8 times the average sales volume among other neighborhoods with $500.6 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had 751,643 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 the tax block of 6201 6th Avenue, PincusCo has identified the owners of two of the 10 commercial properties representing 800 square feet of the 116,870 square feet. The two identified owners are Carmelo Giuffre and Lirr. There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 130,968 square feet of built space are industrial buildings, with specialty buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 6201 6th Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Andy Weihan Ho borrowed $17.7 million from Golden Bridge Funding secured by the 8,727-square-foot development site (V9) on 617 62nd Street and one other property on November 15, 2021.

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