Palmese and Amirkhanian of Massey Knakal broker $8.9 million sale of 10,400 s/f retail building

A retail building at 357-365 Flatbush Ave., located between Sterling and Park Places in the Prospect Heights neighborhood, was sold in an all-cash transaction valued at $8.9 million. The site currently consists of a three-story building that contains 10,400 s/f and sits on a 75' x 75' irregular lot. The building contains two commercial tenants and two residential apartments. One ground floor commercial tenant has a lease in place through 2016 and one of the residential units remains rent stabilized. The other two units are leased on a month-to-month basis. The property benefits from 75 ft. of frontage along one of the most desirable retail corridors in the borough. The site is located in a C2-4/R7A zoning district, which would allow for 15,200 additional s/f of development rights. With the tenants in-place, the property was purchased for future retail redevelopment. The building sold for $855 per s/f or $350 per buildable s/f, and an in-place capitalization rate of 3.9%. "The sale is a testament to the continued growth and future outlook of retail on Flatbush Ave.," said Massey Knakal's Stephen Palmese, who exclusively handled this transaction with Michael Amirkhanian. "The site offers the purchaser substantial, underutilized retail frontage in the heart of arguably one of Brooklyn's most desirable neighborhoods," said Amirkhanian.