Wharton Properties files plans for one-story QSR building in East Flatbush, bought for $6.7M
Jeff Sutton’s Wharton Properties submitted a new building construction project for a 2,970 square-foot quick service restaurant building at 506 Utica Avenue in East Flatbush, Brooklyn. The plan was filed by Valon Gjonbalaj of Wharton Properties with the New York City Department of Buildings on July 10, 2024 under job number B01071736. It calls for the construction of a one-story building. The project is described in the filing as: construction of 2,970-square-foot one-story eating and drinking establishment with drive through. The architect is Shremshock Architects And Engineers.
Last month, Wharton Properties filed plans for a similar building in Kingsbridge.
The property
The existing retail building in East Flatbush has 9,000 square feet of built space and 38,878 square feet of additional air rights for a total buildable of 47,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 210 feet and is 114 feet deep with a total lot size of 23,999 square feet. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $2 million.
Prior sales and revenue
This property was sold by Samuel Frankel for $6.7 million to Wharton Properties on March 16, 2023.
The 9,000-square-foot property generated revenue of $210,997 or $23 per square foot, according to the most recent income and expense figures.
Violations and lawsuits
According to city public data, the property has received $2,200 in OATH penalties in the last year.
There were no lawsuits or bankruptcies filed against the property for the past 24 months.
The neighborhood
In East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has near average sales volume among other neighborhoods with $375.5 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, East Flatbush has near average amount of major developments among other neighborhoods and is the 8th 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 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans 9,000 square feet on the block.The identified owner is Wharton Properties. On the tax block, there was one new building construction project filed totaling 2,970 square feet. It is a 2,970 square-foot 56 building submitted by Wharton Properties and filed by Valon Gjonbalaj with plans filed July 10, 2024 and it has not been permitted yet.
The owner
The PincusCo database currently indicates that Wharton Properties owned at least 85 commercial properties with 212 residential units in New York City with 3,328,416 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) The portfolio has $243.8 million in debt, with top three lenders as Valley National Bank, Bank of China, and Provident Bank respectively. Within the portfolio, the bulk, or 68 percent of the 3,328,416 square feet of built space are office properties, with retail properties next occupying 20 percent of the space. The bulk, or 85 percent of the built space, is in Manhattan, with Brooklyn next at 11 percent of the space.
The surrounding
Within a 400-foot radius of 872 Midwood Street, PincusCo identified three commercial real estate items of interests occurred over the past 24 months. Of those three items, one was in new building development. It was a new building permit issued on March 26, 2024 for a 338,611-square-foot residential (R-2) building with 321 residential units at 832 Rutland Road. One of those three items was a sale which Jacob Lunger, Israel Lunger, Peryl Lunger, and Malka Lunger bought the 0-square-foot industrial (G7) on EAST 51st Street and two other properties for $11.4 million from Lawrence Pross and Sophie Pross on April 12, 2024. One of those three items was a loan which Jacob Lunger, Israel Lunger, Peryl Lunger, and Malka Lunger borrowed $14.1 million from New York Business Development Corporation, Empire State Certified Development Corporation, and Dime Community Bank secured by the 0-square-foot industrial (G7) on EAST 51st Street and two other properties on April 12, 2024.
Direct link to the property’s ACRIS page and link to DOB NOW portal.