Brooklyn Lots, Warehouse Sell Well Above Asking Price
- Apr 20, 2017
Prezant Auto Glass has sold two vacant lots and a warehouse totaling 12,725 square feet at 814-826 Bedford Ave. in Brooklyn, N.Y., to a local private developer for $12 million.
Marcus & Millichap represented both parties in the transaction.
“The property is a strategically located corner development opportunity. Being one of the few sizable footprints yet to be developed in this submarket, it offers developers unique economies of scale,” Jakub Nowak an associate broker at Marcus & Millichap’s Brooklyn office, told Commercial Property Executive. “The sale’s timing was driven by the seller’s motivation to make a move, not our recommendation on market timing.”
The corner development site is situated by the Myrtle Avenue retail corridor, just a 10-minute walk from the Flushing Avenue and Myrtle-Willoughby Avenues G train subway stops. The property is also close to the Pratt Institute.
“This part of Bedford Stuyvesant that is in high demand from both traditional developers and the nearby Hasidic community,” Nowak said. “The three lots are all zoned for mixed-use development. The buyer plans on developing a Synagogue with either apartments or a hotel above. They will be tearing down the existing structure.”
According to Nowak, once the properties went on sale, there were several rounds of competitive bidding and the Marcus & Millichap team was able to negotiate a completely non-contingent contract and a sale of $314-per-buildable-square-foot, representing $1 million above the original asking price.
Jason Grunberg assisted on Nowak’s team in the sale.
“814-826 Bedford Avenue was one of the largest sites remaining in an area that saw significant development over the past few years,” Grunberg said. “This dramatic transformation from an industrial stronghold to an emerging neighborhood has been driven by the substantial increase in property values and rents.”
Image courtesy of PropertyShark.com