New York, NY Meridian’s Amit Doshi and Shallini Mehra closed on the sale of the Kings Plaza Retail Portfolio, which consists of 2484-2488 Flatbush Ave., 4202-4204 Ave. U, 4206-4212 Ave. U, 4101-4103 Ave. U, 4105-4107 Ave. U, and 4113-4123 Ave. U. The properties have a combined 36,000 s/f and include nine commercial tenants, three residential units, a billboard, and a vacant lot. The portfolio sold for $12.26 million and generated a 5.5% capitalization rate, a 11.9x gross rent multiplier and $335 per s/f.
Meridian’s Doshi and Mehra in conjunction with J. A. Cohen Advisory represented both the seller and the purchaser.
“The portfolio’s tenants are in demand, neighborhood service providers resulting in stable cashflow. In addition, with close proximity to Kings Plaza, the properties benefit from strong foot and car traffic. From the prospective of the purchaser, who are also prolific builders, the future development potential was also an important factor,“ said Doshi.
“The purchaser is vested in the immediate neighborhood and the deal closed in less than 60 days to satisfy a 1031 exchange requirement. We believe the purchaser can realize 15-20% in rental upside within a short time span as retail rents are recovering, post pandemic,” said Mehra.
Marine Park is characterized by mom-and-pop shops along the tree-lined blocks and low-rise buildings. The portfolio is located at the intersection of Flatbush Ave. and Ave. U between the Kings Plaza Shopping Center and Marine Park. Kings Plaza is New York City’s first indoor mall with notable tenants including Macys, Target, Forever 21, and Chipotle. Marine Park is the largest park in Brooklyn sitting on 530 acres and offering activities including a golf course, playgrounds, and bike trails. The properties also offer direct access to the Belt Parkway.
Attorneys Corey Kaplan of Davis & Gilbert LLP represented the seller and Oren Goldhaber represented the purchaser in this transaction. Flushing Savings Bank was the purchaser relationship bank that was able to close the loan in a very short timeframe.