TerraCRG announced the sale of two mixed-use buildings located along Fifth Avenue, one of the busiest commercial corridors in Brooklyn.
Adam Hess, Sam Shalumov, Edward Setton, Kirill Galperin and Amanda Keller brokered the sale of both corner properties, located at 3901 Fifth Avenue in Sunset Park, and 6901 Fifth Avenue in Bay Ridge.
Combined, the buildings sold for $10,500,000.
While there is very little turnover in both Sunset Park and Bay Ridge, and the sale of corner buildings is even more rare, these two transactions represent a unique and remarkable scenario in which two corner properties in two of South Brooklyn’s busiest retail corridors, were offered to the market simultaneously.
Also notable, said the brokers, is the similarity found in the CAP rates, both just under five percent and buyer profiles, two Manhattan-based investors.
“The continued spread of growth in the Brooklyn market is evident by the fact that investors who usually buy in Manhattan paid sub five percent CAP rates to buy in neighborhoods like Bay Ridge and Sunset Park,ˮ noted the brokers in a press release.
3901 Fifth Avenue in Sunset Park, home to New York City’s third largest and fastest growing Asian business district, sold to a large Manhattan ownership group for $3,200,000, which equates to a 4.8 percent CAP rate, $540 psf and 18 times GRM.
The 6,000 s/f building, sold by a Brooklyn family which has owned the building since the 1930’s, housed three generations of the family’s dental practice.
The property consists of four ground floor retail spaces, three apartments and one office space. The commercial spaces average $56 psf while retail rents in this area of Fifth Avenue corridor exceed $100 psf. The residential rents are averaging $26 psf in a $40 psf market.
6901 Fifth Avenue sold for $7,300,000, which also equates to a 4.8 percent CAP rate, as well as $455 psf and a 15 times the rent roll.
Currently occupied by Bank of America, this 10,248 s/f has over 7,000 s/f of available air rights.
“We are really excited by the growth and transformation we are seeing in Sunset Park and Bay Ridge,” said Hess, Partner at TerraCRG.
“To see two corner properties, in distinct areas not that close to Manhattan, sell for over $500/SF and under a five percent CAP rate, is a testament to the rapid transformation of the borough.”