axxis real estate llc/
Feb 7, 2020
BAY RIDGE — A Third Avenue building that housed a popular diner for 40 years has been sold for $2.1 million to a Bay Ridge buyer, according to the real estate firm that handled the transaction.
The 3,000-square-foot building at 7506 Third Ave. officially changed hands on Dec. 16, according to a press release issued by Axxis Real Estate LLC, a Long Island City-based firm.
The Lighthouse Diner was located on the ground floor of the building for several years. But there has been a diner at the location dating back 40 years, said Bob Howe, president of the Merchants of Third Avenue. “There were different incarnations of diners there, but it was always a diner,” he told the Home Reporter.
The Lighthouse Diner recently closed.
A Mexican restaurant will replace the Lighthouse, according to Axxis Real Estate LLC.
The three-story property, which also contains two apartments, was purchased by Alrassi Real Estate LLC, an entity based on Colonial Road in Bay Ridge, according to documents filed with the New York City Department of Finance.
The seller was MSN Real Estate Management of Rockville Centre.
The $2.1 million price tag works out to $702 a square foot.
“The seller was motivated to dispose of the property to transition from a mixed-use property to a net leased property. The purchaser recognized the opportunity to acquire an off-market fully leased, gut-renovated property with no deferred maintenance, at a market cap rate,” said Michael Hagen, managing principal of Axxis Real Estate, who represented both the buyer and seller.
The cap rate refers to the ratio between the net operating income an asset produces and the current market value. The cap rate for the building at 7506 Third Ave. is 4.63 percent, according to Axxis Real Estate LLC.
Howe, whose organization represents hundreds of store and restaurant owners on Third Avenue, said the changeover from the Lighthouse Diner to a Mexican eatery is perhaps a sign of the times.
“A lot of diners have closed in New York over the past few years. The trend seems to be moving toward a more upscale dining experience. People want to sit in a coffee house with their laptops,” he said.
The sale of the Third Avenue building marked the second major real estate-related development on Third Avenue in recent days.
Last week, it was learned that the real estate firm Gama Group NYC has listed Chobana Grill Cafe, a Turkish restaurant at 8602 Third Ave. The asking price is $160,000.
The new owner would have to purchase the restaurant business and then assume responsibility for the lease and the monthly rent paid to the building owner.
The four-story building, which also contains 12 apartments, is owned by George Poulakakos.