Vahe Sahakyan pays $2M for retail in Sheepshead Bay

Vahe Sahakyan through the entity 2965 Ocean Ave Dev LLC paid $2 million to Steven Murphy through the entity Am 2965 LLC for the retail building (K1) at 2965 Ocean Avenue in Sheepshead Bay, Brooklyn.
The deal closed on May 17, 2024 and was recorded on May 21, 2024. The property has 3,700 square feet of built space and 13,104 square feet of additional air rights for a total buildable of 16,800 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $540 and the price per buildable square foot is $119 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 Steven Murphy was Steven Murphy. The signatory for Vahe Sahakyan was Vahe Sahakyan. The contract date was November 20, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Vahe Sahakyan purchased two properties in one transaction for a total of $1.8 million and has no record it sold any properties over the past 24 months.
The seller Steven Murphy had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Sheepshead Bay has 3,700 square feet of built space and 13,104 square feet of additional air rights for a total buildable of 16,800 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 105 feet deep with a total lot size of 4,200 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $457,000.

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 $650 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 $1 million on this tax lot.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.7 times the average sales volume among other neighborhoods with $462.1 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 862,871 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 44 commercial properties representing 31,994 square feet of the 200,187 square feet. The largest owner is Yelena Galper, followed by Raul Diaz and then Bassolino Louis.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 200,187 square feet of built space are mixed-use buildings, with elevator buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Steven Murphy owned at least two commercial properties with 18 residential units in New York City with 20,750 square feet and a city-determined market value of $4.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 52 percent of the 20,750 square feet of built space are walkup properties, with mixed-use properties next occupying 48 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Vahe Sahakyan owned at least four commercial properties with 12 residential units in New York City with 7,355 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) The portfolio has $7.4 million in debt, borrowed from Colorado Federal Savings Bank. Within the portfolio, the bulk, or 56 percent of the 7,355 square feet of built space are development properties, with B2 properties next occupying 24 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link