Wednesday, May 7, 2014

South Brooklyn Pizza space on the market for $18,975 (a month)


[Image via Elliman]

South Brooklyn Pizza closed for good at 122 First Ave. toward the end of April. For rent signs went up immediately.

And we just spotted the listing over at Douglas Elliman. There's not a whole lot of info, but you get the idea:

This East Village special was previously used as a restaurant and bar. Sports exposed red brick, sky lights, outdoor patio and a basement that will be sub divided. Approximately 2300sf.

The asking rent is $18,975 per month.

Signs on the storefront on April 22 indicated that South Brooklyn Pizza was moving to a new location in the East Village. However, we haven't heard anything more about that.

The Marshal seized the space on April 24. A rep for the landlord told an EVG reader that the pizzeria owners hadn't paid rent in several months. In August 2012, the company behind South Brooklyn Pizza filed for Chapter 11 bankruptcy protection.

Updated 10:04 a.m.
Check out the comments ... where VH McKenzie does some math to figure out how much pizza you'd need to sell a day to afford this space...

Previously on EV Grieve:
The Marshal seizes South Brooklyn Pizza; space is now for rent

19 comments:

  1. Doing some simple math and I figure they'd have to sell about 450 slices of pizza (at 1.50 per slice) PER DAY, 7 days a week.

    If they were open 8 hours a day, that would be about one slice per minute, just to pay the rent.

    ReplyDelete
    Replies
    1. They must have done that same math originally as they charged $4.50 a slice.

      20 large pies a day and they make rent (but not salaries, utilities, extermination, food costs, etc.)

      Delete
  2. I think we need to start a letter-writing campaign to our elected officials demanding commercial rent control. This is just so far beyond the pale.

    ReplyDelete
  3. This city is rent-hiking itself into irrelevance. Where is the incentive for anyone to open a small business around here at these rents. Break your back just to tread water. Why are property values around here so obscenely inflated? It's probably to do with overpopulation. Which means it's a hopeless situation. Time to move. Supposedly the midwest corridor aka the flyover is the future of america. I mean how bad could it be, when our own city is pretty much turning into the mall of america.

    ReplyDelete
  4. another chase bank perhaps

    ReplyDelete
  5. Also, per the listing ("24 ft wide"), sounds like that includes the space they took over a door down for seating (old Ruben's?). That probably did them in. Never anyone in there, doubled their rent, and a by-the-slice pizza joint doesn't need/can't afford tables. Not at that price.

    Keep that overhead down. Don't get cocky.

    ReplyDelete
  6. when ruth messenger was in the city council she helped create the "small business task force" that tried to get commercial rent control.
    the state said the city had to pass something first and the city said the state had to enable them.
    has anything changed since then? (except that the rents are higher now)

    ReplyDelete
  7. Their drinks were too expensive, especially doing business next to an established bar known for its cheap specials.

    ReplyDelete
  8. @blue glass: "has anything changed since then? (except that the rents are higher now)"

    Yup.

    The city budget has increased by nearly 60% since 2001.

    And property taxes, the largest source or revenue for the city (and which are generally passed on to tenants, both commercial and residential, in the form of rent increases), have doubled over that same time frame.

    Source: Comprehensive Annual Financial Reports of the Comptroller

    http://www.ibo.nyc.ny.us/RevenueSpending/RevandExpSummary.xls

    Something's gotta give, and we know Mayor Bill has zero proclivity to turn down the spigot on city government growth, so...

    If you're not fortunate enough to live in a stabilized or controlled dwelling, bend. over.

    ReplyDelete
  9. I walked by this place a million times but other than seeing a hunk of cheese in the window I was not sure what this business was, now you tell me they sold pizza?
    Rent control for residents I can support but not commercial rents. Storefronts can help support the lack of rent money a landlord makes from having rent controlled or stabilized tenants. I hate to see old favorite mom and pop or pop and pop places go but commercial spaces really are about survival of the fittest. Too many 7-11 is not sustainable as well of other horrible chains like Subway, etc... A landlord can decide if they want a one of "those" businesses in their building for 2 years or less, or get a local neighborhood centric business with long roots.

    ReplyDelete
  10. @Anon 2:09:

    Exactly.

    What do you think happens to rents for the residential tenants who live upstairs from the stabilized commercial tenants?

    Be careful what you wish for...

    ReplyDelete
  11. commercial rent control?!! What a joke.

    ReplyDelete
  12. Look, commercial rent control might or might not be a good idea, but this place wasn't open long enough for them to even renew the lease once. They made a bad business decision, thinking that they could make the rent by selling slices of expensive pizza. Businesses make bad decisions every day. Sure I feel bad for the people who worked there and are now unemployed, but this was business.

    ReplyDelete
  13. Don't need commercial rent control. You need to charge landlords Real Estate tax on vacant properties.

    Most got the building for pennies in the 80's. Building is owned and a source of pure profit.

    There is no real estate taxes due if a property is empty.

    Landlords set crazy high rent and can afford to wait for a dumbass. Doesn't cost them anything

    Dumbass agrees to rent and gives 3-4 months deposit. Drops another $50-100k in construction.

    Year later dumbass goes out of business. "Good Guy" clause encourages dumbass to walkaway from deposit and vacate asap in broom clean condition

    Landlord pockets deposit and puts property back on market for even more. Awaits next dumbass and deposit lottery win. If super greedy he even tries tp charge Key Money for any improvements previous dumbass made.

    What do you get if you live here? National chains like 7-11, mcdonalds, jamba juice, ad nauseum.

    OR

    Charge the greedy bastards real estate tax vacant or not. Landlords have incentive to rent quickly. Rents are priced to rent and negotiated.

    Local businesses run by locals get a shot to succeed. We enjoy diversity. Landlords still get rich.

    ReplyDelete
  14. $18,985 is only for the red doored half. To access the back dining area customers either need to squeeze past the oven or you need to rent the space next door.

    Add $5k/mo for the 500sq ft bar @120 1st Ave if you want access and a bathroom

    ReplyDelete
  15. "What do you think happens to rents for the residential tenants who live upstairs from the stabilized commercial tenants?"- So continuing with Matt Rosen's line of reasoning, if landlords can demand whatever jaw-droppingly rapacious rates they want for their commercial spaces, then it should stand to reason they would not need to charge usurious rents for their rental units as well. However, as we all know, that is NOT what is happening, not by any stretch of the imagination. So, what, Mr. Rosen, we are just supposed to roll over and play dead and let landlord greed continue to destroy our city as we are driven both from our homes and our stores? Sorry, I don't think so.

    ReplyDelete
  16. Whatever BP was paying for didn't matter.. the "fresh slice" business model sucked. I was willing to pay the price WHEN they had the slice. But I walked out surely 50% of the time cuz they had no product close to ready.

    ReplyDelete

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