Trophy Brooklyn Retail - Assumable Financing 262 Atlantic Ave 28,112 SF 100% Leased 4-Star Retail Building Brooklyn, NY 11201 $32,700,000 ($1,163.20/SF) 5.51% Cap Rate

The subject offering is the rare opportunity to acquire a newly constructed, trophy retail property in the heart of Boerum Hill, one of Brooklyn’s most affluent and desirable neighborhoods. Located at 262-276 Atlantic Avenue, the property occupies a premier stretch of Atlantic Avenue between Boerum Place and Smith Street, surrounded by an exceptional collection of national retailers, restaurants, and neighborhood amenities that generate exceptional traffic throughout the day.
Originally developed beginning in 2017 and completed in 2021, the property consists of 26,733square feet with 150 feet of retail frontage along Atlantic Avenue. The offering is occupied by two tenants, both on long-term leases with 10% increases every five years. Five Below occupies 10,000 SF, with a 655 SF entrance on the ground floor, and the entire 10,000 SF lower level. This is a corporate guaranteed lease with Five Below, which has 1,970 locations and reported revenue last year of $5.9 Billion. The balance of the property is leased to the New York City School Construction Authority (“NYCSCA”) for occupancy by the New York City Department of Education, the largest public school system in the United States, serving approximately one million students across more than 1,500 schools. The NYCSCA leases 8,810 SF on the ground floor, plus the entire second floor for a brand-new school, and contributed $4 million toward the build-out of its space.
The offering provides investors with the opportunity to acquire a high-quality, institutional-caliber asset featuring strong in-place cash flow, minimal management and long-term appreciation potential in one of New York City’s most dynamic neighborhoods. The property also features an assumable loan with below market debt at 3.50% interest, that runs through 2032. In addition, the property benefits from a long-term 25-year ICAP tax abatement that runs all the way until 2045.