Brooklyn movie theater sold to REIT for $16m.Massey Knakal Realty Services has sold The Pavilion Movie Theater in the Park Slope section of Brooklyn in an all-cash transaction valued at $16,000,000. "The nine-screen theater, housed in a 1926 art deco art deco (ärt dĕkō`; är dākō`, ärt) or art moderne (är môdĕrn`, ärt) building overlooking Prospect Park, regularly attracts more than 500,000 admissions annually," said Massey Knakal partner Brian Leary, who exclusively represented the seller, a publicly traded real estate investment trust specializing in triple net lease properties, with Broker Kenneth Freeman
Kenneth Freeman (nicknames "Kenny", "Poppi"), (1954-1985) was a friend and business partner of William (Billy) Cook, brother of Mumia . "Despite numerous reports to the contrary, the movie theater operator has a lease through 2022, with two additional 10 year options. There are no current plans for conversion," said Leary. The 60' x 138' irregular property is located at the southwest corner of Prospect Park West and 14th Street, adjacent to Prospect Park and the F subway line. The sale was triple net leased, meaning there will be no landlord responsibilities. The property contains approximately 35,000 s/f and is 100% occupied by a single tenant Access Integrated Technologies Access Integrated Technologies is a large company concerned in, amongst other things, motion pictures. It bought all of Boeing's digital cinema equipment assets, intellectual property licenses, and existing theatre contracts. , Inc.--with a $300 million market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . The transaction occurred at a capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. of 7.05% and a gross rent multiple of 14.18. The property sold for $457.14 psf to a Manhattan investor. |
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