Valerio Realty pays $2.5M for industrial in Sunset Park

Giovanni Valerio’a Valerio Realty Group through the entity Valerio Realty Group LLC paid $2.5 million to the entity 127 Realty Company for the industrial building (F5) at 139 42nd Street in Sunset Park, Brooklyn. The two buildings on either side of this one are also owned by the same family that sold this building.
The deal closed on December 20, 2024 and was recorded on January 10, 2025. The property has 5,000 square feet of built space and 5,008 square feet of additional air rights for a total buildable of 10,016 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $510 and the price per buildable square foot is $254 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 signatories for the sellers Kara Pellitteri and Gregg Bloom were Kara Pellitteri and Gregg Bloom. The signatory for Valerio Realty Group was Giovanni Valerio. The contract date was August 7, 2024.
Traded NY previously reported on the sale.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Valerio Realty Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kara Pellitteri had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Sunset Park has 5,000 square feet of built space and 5,008 square feet of additional air rights for a total buildable of 10,016 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,008 square feet. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $677,000.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 9, 2013. 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 Sunset Park, The bulk, or 30 percent of the 35 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 26 percent of the space. In sales, Sunset Park has 1.6 times the average sales volume among other neighborhoods with $414.7 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had -46,403 square feet of commercial and multi-family construction under development in the last two years, which represents -0.13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 33 commercial properties representing 10,004 square feet of the 167,558 square feet. The two identified owners are Wai Ho Chen and Michael Rollhaus.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 167,558 square feet of built space are industrial buildings, with mixed-use buildings next occupying 9 percent of the space.

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