Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of a corner retail building located at 1101 Avenue U in Sheepshead Bay, Brooklyn 12-UNIT CORNER RETAIL BUILDING 2 STORIES 15,190 GSF + BASEMENT 7,595 BSF AVAILABLE AIR RIGHTS ICAP TAX BENEFIT POSSIBLE ASKING PRICE: $9,900,000 Senior Executive Managing
Property Features Location Located on the northeast corner of Coney Island Avenue and Avenue U 7315 7,595 GSF Second Floor 7,595 GSF Ground Floor Block / Lots 7315 / 46 Lot Dimensions 80.73 x 100 Irregular Lot Size 7,595 SF CONEY ISLAND AVE 72.19 46 100 Building Dimensions 80.73 x 100 Irregular Gross Building Size 15,190 SF Stories 2 Commercial Units 12 100.36 80.73 AVENUE U Zoning R6A / C1-3 Residential FAR 3.00 Commercial FAR 2.00 Total Development Rights 22,785 BSF Available Air Rights 7,595 BSF Assessment (17/18) $779,400 Tax Class 4 Taxes (17/18) $82,414 Based on 16/17 rates Information presented herein is subject to change and should be individually verified. All measurements and square footage estimates are approximate. The two-story brick retail building spanning roughly 15,190 SF above-grade plus approximately 5,700 square feet of usable basement space The ground floor hosts five (5) retail units. Two units have expired leased with a third expiration imminent, constituting substantial upside as new commercial leases are signed at market rate The second floor comprises seven (7) office units. Only two of the units have leases in place, while the remainder are currently vacant, have expired leases or tenanted on a month-to-month basis Avenue U, a growing retail corridor, is home to a number of national tenants like Dunkin Donuts, McDonald s, Duane Reade, Capital One Bank, Burger King and TD Bank among others Additional 7,595 BSF of available air rights could be used to expand the property s rentable floor area and maximize income potential Less than 6 blocks from the Q train station and in close proximity to the F train station, both on Avenue U Click to navigate to Virtual Data Room Senior Executive Managing
Building Rent Roll UNIT STATUS SF EXPIRATION $ / SF MONTHLY RENT ANNUAL RENT Ground Floor Second Floor A. Cohen Realty M-to-M 200 - $30 $500 $6,000 R & G Tax Service Leased 945 Jan-21 $29 $2,300 $27,600 Ella Royzman Attorney Expired 345 - $28 $800 $9,600 Comed International Inc. Expired 2,100 - $17 $3,000 $36,000 ALOC Beauty Products Leased 1,200 Jun-18 $61 $6,100 $73,200 Office Vacant 525 - $45 $1,969 $23,625 Corner Office Vacant 510 - $45 $1,913 $22,950 Rainbow Medical Supply Leased 2,650 Jun-22 $29 $6,376 $76,512 Kings Row Men s Clothes Expired 2,670 - $26 $5,750 $69,000 Prince Pizza D. Inc. Leased 960 Sep-23 $75 $6,000 $72,000 Oceana Car & Limo Inc. Leased 390 Dec-17 $62 $2,000 $24,000 Copy Plus Expired 390 - $46 $1,500 $18,000 TOTAL ABOVE-GRADE 12,885 $36 $38,207 $458,487 Basement Julie s Flowers 5,200 $4 $1,912 $22,944 ALOC Beauty Products 400 Included in lease Prince Pizza D. Inc. 100 Included in lease Water bill - Prince Pizza D $400 $4,800 Tax bill - tenants pay above varying base amounts $2,676 $32,107 GRAND TOTAL 18,585 $43,195 $518,338 All square footage estimates are approximate and should be independently verified. Total basement space estimated from building footprint using 25% loss factor Rents for units highlighted in blue are projected due to tenancy status Senior Executive Managing
Income Statement GROSS ANNUAL REVENUE $518,338 EXPENSES Real Estate Taxes (17/18) Per Department of Finance public records $82,414 Insurance Provided by Owner $11,316 Fuel (Gas) Electric Paid by tenants Paid by tenants - - Water/Sewer Provided by Owner $5,387 Repairs & Maintenance Estimated at 3% of the gross annual income $15,550 Property Management Estimated at 5% of the gross annual income $25,917 TOTAL EXPENSES $140,584 NET OPERATING INCOME $377,754 Senior Executive Managing
General Floor Diagram 2nd Floor RR Stairs Ground Floor Stairs ALOC Beauty 1,200 NSF Exp. Jun-18 RR A. Cohen 200 NSF M-to-M R & G Tax 945 NSF Exp. Jan-21 Rainbow Medical 2,650 NSF Exp. Jun-22 Stairs Comed International 2,100 NSF Expired Ella Royzman 345 NSF Expired Office 525 NSF Vacant Corner Office 510 NSF Vacant Stairs Copy Plus 390 NSF Expired Limo 390 NSF Exp. Dec-17 Kings Row 2,670 NSF Expired Prince Pizza 960 NSF Exp. Sep-23 The floor diagram is no drawn to scale and may only be used for general reference. The square footage estimates are approximate and subject to change. Prospective purchasers should be independently verify all information presented herein. Senior Executive Managing
Zoning Overview R6A is a contextual district where the Quality Housing bulk regulations are mandatory. These regulations produce high lot coverage, six- or seven-story apartment buildings set at or near the street line. Designed to be compatible with older buildings found in medium-density neighborhoods, R6A districts are mapped in the Bronx, Brooklyn and Queens. Parts of Kingsbridge in the Bronx and Williamsburg in Brooklyn are typical R6A areas. R6A/C1-3 The floor area ratio (FAR) in R6A districts is 3.0. Above a maximum base height of 60 feet, the building must set back by at least 10 feet on a wide street and 15 feet on a narrow street before rising to its maximum height of 70 feet. To preserve the traditional streetscape, the street wall of a new building can be no closer to the street line than any building within 150 feet on the same block, but need not be farther than 15 feet. The area between a building s street wall and the street line must be planted. R6A buildings must have interior amenities for the residents pursuant to the Quality Housing Program Off-street parking, which is not allowed in front of a building, is required for 50% of a building s dwelling units, or can be waived if five or fewer spaces are required. C1-1 through C1-5 and C2-1 through C2-5 districts are commercial overlays mapped within residence districts. Mapped along streets that serve local retail needs, they are found extensively throughout the city s lowerand medium-density areas and occasionally in higher-density districts. Typical retail uses include neighborhood grocery stores, restaurants and beauty parlors. C2 districts permit a slightly wider range of uses, such as funeral homes and repair services. In mixed buildings, commercial uses are limited to one or two floors and must always be located below the residential use. When commercial overlays are mapped in R1 through R5 districts, the maximum commercial floor area ratio (FAR) is 1.0; when mapped in R6 through R10 districts, the maximum commercial FAR is 2.0. Commercial buildings are subject to commercial bulk rules. Overlay districts differ from other commercial districts in that residential bulk is governed by the residence district within which the overlay is mapped. All other commercial districts that permit residential use are assigned a specific residential district equivalent. Unless otherwise indicated on the zoning maps, the depth of overlay districts ranges from 100 to 200 feet. Generally, the lower the numerical suffix, the more off-street parking is required. For example, in C1-1 districts, typically mapped in outlying areas of the city, a large food store would require one parking space for every 100 square feet of floor area, whereas no parking is required in C1-5 districts, which are well served by mass transit. Source: The Department of City Planning website. www1.nyc.gov. January 2017. Senior Executive Managing
Avenue U Station Q Senior Executive Managing
Neighborhood Overview Sheepshead Bay is bounded by McDonald Avenue and Shell Bank Creek to the east, Gerritsen Avenue and Gravesend to the west, Avenue P to the north, and both Manhattan Beach and its same-named bay to the south. Historically known as a fishing village, the area declined in business and tourism after World War II. Over the last few years, however, this area has undergone a renaissance. Not coincidentally, it has seen an influx of immigrants from the former Soviet Union, China, India, Pakistan, Vietnam, Israel, the Philippines, Poland, and Guyana. Today, Sheepshead Bay is one of the largest neighborhoods in Community District 15. About 1,200 owners hold title to the 1,400 commercial properties in the neighborhood. This growth has also dovetailed with skyrocketing condominium development, as residents from the community seek more upscale housing along the waterfront. The large majority of condominium development occurring today are redevelopment projects along two major corridors: Ocean Avenue and Emmons Avenue. On Ocean Avenue, the as-of-right residential zoning is R6, yet there are an abundance of two- and three family homes on 20 x 100 lots. Developers seeking to take advantage of this favorable zoning are attempting to put together assemblages of two or more lots in order to build small 10,000 to 12,000 square foot condominium projects. It is no surprise that Sheepshead Bay is spearheading the growth of condominiums in Brooklyn, with over 515 units in the pipeline. The other hot spot for residential development in Community District 15 is Emmons Avenue, which is in the heart of Sheepshead Bay. It is clear as areas such as Williamsburg, DUMBO, and Downtown Brooklyn continue to concentrate on high-end product, many Brooklynites are migrating into south and east Brooklyn seeking more affordable living standards thus creating greater demand for retail. Senior Executive Managing