Wayne Wu pays $6.7M to Mann Group for mixed-use in Crown Heights

Wayne Wu through the entity 787 Franklin Av Xnb LLC paid $6.7 million to Mann Group through the entity 787 Franklin Avenue LLC for the four-unit mixed-use building (S9) at 787 Franklin Avenue in Crown Heights, Brooklyn.
The deal closed on April 20, 2023 and was recorded on May 1, 2023.
Eric Mann of 787 Franklin Associates LLC submitted a major alteration to convert a four-unit, 7,731 square-foot residential (RES) building into a five-story and penthouse, eight-family and commercial retail building. The plan was filed with the New York City Department of Buildings on January 20, 2017 under job number 321184197 and was permitted on June 11, 2018.
The seller bought the property on December 16, 2016, for $3.4 million. The signatory for Mann Group was Eric Mann. The signatory for Wayne Wu was Wayne Wu.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Wayne Wu had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Mann Group had not purchased any other properties and sold two properties in two transactions for a total of $8.4 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Eric Mann, head officer and Jeff Mann, agent. The business entities are L Rose Realty, Inc and 787 Franklin Avenue Llc. The 5,994-square-foot property generated revenue of $137,023 or $23 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 27 feet and is 90 feet deep with a total lot size of 2,444 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 $1.3 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 received $625 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 2, 2020. 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 Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.7 times the average sales volume among other neighborhoods with $592 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Crown Heights has 2.9 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.9 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 mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 16 of the 21 commercial properties representing 101,996 square feet of the 128,226 square feet. The largest owner is Watermark Capital Group, followed by NYC Equities Real Estate and then Mann Group.
There are no active new building construction projects on this tax block.

The majority, or 73 percent of the 128,226 square feet of built space are walkup buildings, with mixed-use buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Mann Group owned at least 27 commercial properties with 125 residential units in New York City with 145,197 square feet. The portfolio has $19.5 million in debt, borrowed from Ladder Capital. Within the portfolio, the bulk, or 46 percent of the 145,197 square feet of built space are walkup properties, with mixed-use properties next occupying 39 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Manhattan next at 4 percent of the space.

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