1100 -1114 Kings Hwy, Brooklyn, NY 11229
Zetabid is pleased to present the sealed bid auction of a prime retail building located on the corner of Kings Highway and Coney Island Avenue in Brooklyn’s Midwood neighborhood. The 43,318 square foot building sits on two tax lots with 27,725 square feet of land and 109 feet of frontage on Kings Highway and 251’ on Coney Island Avenue. The parcels are zoned C4-4A & C2-3/R7A with a FAR of 4 creating a future mixed use residential over commercial development opportunity for a building of just under 110,000 square feet (79,600 air rights). Ownership created conceptional plans for 154 residential units over retail and likely represents the long term highest and best use when leases end.
Over the past year, the ownership has renewed Chase Bank and replaced prior tenants Dress Barn and Mandee’s with a new Skecher’s store, woman’s fashion boutique store Esti’s, and a successful Karate franchise in the cellar space. At closing the property should be fully leased with five and ten-year leases (Sketcher’s store opens May 2021).
The property is surrounded by national retailers including Walgreens, 24-Hour Fitness, Taco Bell, 7-Eleven, TD Bank, Starbucks, TJ Maxx, and AT&T. Located four blocks from the Kings Highway subway station (Q/B Trains), this location is situated on a prime Brooklyn corner with outstanding visibility on two of the most heavily traveled streets in Brooklyn.
This represents a great stabilized investment with low expenses and management. There is major upside with future development in the up and coming Midwood neighborhood where ‘urban and suburban meet’ (NY Times 2015).
1. Sketchers: Lease type modified gross. Ten-year lease begins 9/5/2020 with 2 five-year renewal options at $72.60 and $79.85 per square foot. Taxes above base year rent. Percentage rent 5% of 4M in sales. Store open date is May 2021 and landlord to pay TIs prior to close or will credit buyer. TIs $45/PSF with landlord paying tenant $20/SF in cash & $25/SF in free rent. Sketchers occupancy date subject to completion of it’s TI work and contains six months free rent. Financial proforma projections based on full year rent.
2. JP Morgan Chase Bank: Lease started in 2005 and currently in first of three five-year options. Lease type NN with monthly fixed CAM of $500 and % of taxes. Chase has two more five-year options with the first in 2029 with a rent bump to $982,620 annual and the second at FMV (w/ minimum).
3. Tiger Shulman Karate: Lease out for execution. Lease start date is 12/01/2020.
4. Esti’s: Lease type double net. Monthly CAM $500. Rent flat for 2 years then 3% annual bumps. One 5-year option with 2% annual bumps. Termination clause at month 84. State taxes capped at $2,500 per month.