Anonymous buyer pays $9M for newly built 18-unit elevator rental in Bushwick

An anonymous buyer through the entity Ems 1223 LLC paid $9 million to Kin Cheung through the entity Kk Putnam Realty LLC for midblock 18-unit residential elevator building at 1223 Putnam Avenue in Bushwick, Brooklyn.
The deal closed on April 1, 2022 and was recorded on April 18, 2022.
The property has 16,329 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $551 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 Kin Cheung was Kin Cheung.

The property

The 1223 Putnam Avenue parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.4 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $200 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 12, 2021. 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 Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million 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. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 18 commercial properties representing 25,366 square feet of the 96,150 square feet. The largest owner is Linda Vera-Benitez, followed by Yidel Mann and then Goldmont Realty. There are nine active new building construction projects totaling 72,667 square feet. The largest is a N/A-unit, 25,196-square-foot B building developed by Bob Michaeli with plans filed April 25, 2017 and it has not been permitted yet.The second largest is a nine-unit, 9,022-square-foot R-2 building developed by Bob Michaeli with plans filed February 12, 2018 and permitted August 23, 2019.

The majority, or 43 percent of the 169,159 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 27 percent of the space.

Surrounding

Within a 400-foot radius of 1223 Putnam Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit issued on February 9, 2022 for a 20,760-square-foot R-2 building with 21 residential units at 1206 Putnam Avenue.
Of those four items, three were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $1.5 million and one initial temporary certificate of occupancy issuance for a project that initially costed $556,000. The most recent of these three items was the permit on January 21, 2021 for a 4,392-square-foot R-2 building with six residential units at 1215 Putnam Avenue.

Direct link to Acris document. link