Family-owned real estate firm the Zucker Organization has purchased a fully occupied Bay Ridge property from Thor Equities for $5.7 million, Commercial Observer has learned.
“We continue to believe strongly in the Brooklyn retail market,” said Joseph Sitt, the chief executive officer of Thor Equities, in prepared remarks. “However, we felt the time was right to sell this strategically located property, after successfully implementing our business plan of improving a foreclosed-on building and replacing the below market tenant with a nationally recognized brand.”
Chipotle Mexican Grill signed a 15-year-term lease for the two-level, 4,475-square-foot building located at 86th Street between Fourth and Fifth Avenues in September 2014, about two years after Thor purchased the property for $2.82 million, according to Thor and property marketing materials from a team led by Robert Knakal of then-called Massey Knakal Realty Services (now Cushman & Wakefield). The eatery pays $300,000 per year in rent, increasing 10 percent every five years, the online marketing document indicates. The asking price for the building was $5.95 million.
“It really illustrated the strength of the buyer and the seller,” Mr. Knakal said. “Thor created value by renovating and releasing a building. And [Donald] Zucker [of Zucker Organization] is one of the most astute net-lease property buyers in the country.” The broker added that Mr. Zucker “saw the value” and took the deal as part of a 1031 Tax Exchange.