CPEX New York Development and Conversion Investment Sales Team team closes $3.3 million

According to the CPEX New York Development and Conversion Investment Sales Team it has completed the sale of a mixed-use/development site located at 1413-1425 Fulton St. The site consists of an existing medical health facility that is built full to the lot on Fulton St. between New York Ave. and Brooklyn Ave., across from Restoration Plaza. The 10,247 s/f lot is zoned R7D with a C2-4 commercial overlay, permitting 43,037 s/f of buildable space "as of right." With inclusionary housing, the lot can be built to a maximum of 57,391 s/f. The property was sold for $3.3 million with a tenant whose lease expires in October 2013. The new owner plans to hold the asset until lease expiration and then reposition it for retail or a mixed use development. The sale price was $3.3 million, all cash. The property sold for $322 per s/f for the existing building, or $76 per s/f on a buildable basis. Managing partner Brian Leary, managing director Sean Kelly, Esq., and associates Cengiz Sendogdular and Matthew Dzbanek, represented the seller, Shiloh Realty Corp. and procured the purchaser, Stath Realty Corp. "This stretch of Fulton St. is a vibrant retail corridor with a mix of national and local tenants. We received a lot of interest from retail investors and end users. We also had several offers from developers because the site is eligible for 421a tax benefits since it is located outside of the Geographic Exclusion Area (GEA). With rental rates climbing and vacancy rates plummeting, particularly in prime markets, we expect to see more transactions in sub-markets such as Bedford-Stuyvesant, Bushwick, and East Williamsburg where 421a tax incentives are still available," said Kelly. "With the 421a tax abatement expiring there is huge demand for development sites in well-located and transit accessible areas outside the GEA where 421a benefits are 'as of right.' Demand for mid-scale development sites is inching back to pre-recession levels. There is resurgence in the residential market in Bedford Stuyvesant as rents have increased dramatically the last several years in Downtown Brooklyn, Fort Greene, Boerum Hill, Park Slope and Williamsburg. I also expect to see retail rents increase and vacancies decrease along this stretch of Fulton Street, as several local tenants have relocated from Downtown Brooklyn already to capitalize on more favorable rents and a vibrant housing market with good transportation," said Leary.