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Shiya Labin made quick work of a Brooklyn office play, selling a property in Borough Park — an insular neighborhood known for its Orthodox Jewish community — for well above the purchase price of five years ago.
Ahava Medical’s George Lebovits appears to have bought 6201 15th Avenue in the area for $42.3 million, Crain’s reported. Williamsburg-based limited liability company 6201 BSD, a shell company for Labin, was the seller.
The deal breaks down to $280 per square foot. Lebovits’ plans for the property are unclear, but he already runs a pair of medical facilities in Brooklyn. There is a tenant in place, Naccarato Insurance, but it only occupies 500 square feet, leaving most of the building vacant; the asking rent is $40 per square foot.
Labin picked up the 151,000-square-foot Class B office building in 2020 for $29.5 million. That acquisition included a vacant lot diagonal to the property, which is used for parking.
Construction of the four-story building wrapped in 2002. The second floor was used to manufacture clothing, according to Department of Buildings records, before it was converted to office space.
TerraCRG’s Dan Marks, who was involved in the 2020 sale of the property, cited the strong demand of investors in the neighborhood as a reason for a price per square foot that exceeds the average seen in Brooklyn overall.
“Strong community ties generally drive the prices up above the average in areas like Borough Park,” Marks told the publication.
Elsewhere in Brooklyn, Scott Rechler’s RXR Realty recently washed its hands of the first office it ever acquired in the borough.
Lincoln Property Company and Cross Ocean Partners teamed up to acquire the leasehold interest on the office building at 470 Vanderbilt Avenue in Clinton Hill, Commercial Property Executive first reported. A sale price wasn’t disclosed, but sources told The Real Deal it changed hands for $70 million, or $108 per square foot.
— Holden Walter-Warner
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RXR trades Downtown Brooklyn office for $70M
RXR trades Downtown Brooklyn office for $70M
Demand for Brooklyn office still catching up to supply
