The owners tied to the former Versace Mansion have quietly unloaded a four-story office-and-retail building at 423 Fulton Street in Downtown Brooklyn, selling the 1920s property to Midwood Investment & Development in a deal that tightens an ongoing Fulton Street buying streak.
According to Crain's New York Business, Midwood Investment & Development is the buyer and the sale was reported Tuesday. Crain's noted that the sellers have ties to the family that owns Casa Casuarina, the Miami Beach estate once home to Gianni Versace, and framed the move as part of a quiet portfolio reshuffle.
Commercial Observer pegged the sale price at $9.5 million and identified the seller as BNN Fulton Flushing Owner LLC, whose principals include investor Ralph Braha and members of the Nakash family of Jordache. Commercial Observer also reported that the Nakash family owns Casa Casuarina and recently scored a $44.7 million refinancing on that property.
About the Building
Public records describe 423 Fulton Street as a four-story, 11,728-square-foot office-with-retail building constructed in 1920 and classified as an O5 commercial property. PropertyShark notes that the structure sits on a roughly 2,932-square-foot lot and holds five commercial units.
Where It Sits in a Changing Fulton Street
The building is directly across from 422 Fulton Street, the former Macy's site that has become a magnet for big-ticket deals and leases. The Real Deal reported that the Wheeler, the complex created out of the old department store, has locked in long-term institutional tenants. That wave of activity, combined with separate proposals to convert portions of the block into multi-floor retail and entertainment space, has pushed investors to give smaller parcels and storefronts along Fulton a harder look.
Midwood's Footprint and What Might Come Next
Midwood, led by John Usdan, has been on a buying run in recent months, picking up retail and mixed-use properties across Manhattan and Brooklyn, and the 423 Fulton acquisition joins that pipeline, according to Commercial Observer. KSR's Albert Sultan and Joseph Ash brokered the 423 Fulton transaction for both the buyer and the seller, Commercial Observer reported, and a Midwood spokesperson did not immediately respond to requests for comment.
For now, the deal looks like a straightforward value-add or long-term hold play, a compact, cash-flowing office-and-retail building on a block where other players have already taken much bigger swings. Midwood has not yet announced any renovation or repositioning plans for 423 Fulton Street.
