Multi-family buildings are selling like crazy throughout Brooklyn, and the biggest growth is happening in the rapidly gentrifying neighborhoods of Crown Heights, Bed Stuy and Bushwick, according to a report from Ariel Property Advisors highlighted by The Real Deal. In those three neighborhoods alone, 252 properties were sold in 170 transactions totaling nearly $710,000,000. Sales in Crown Heights, Bed Stuy and Bushwick made up a quarter of all the borough’s investment transactions. (more…)
A tipster tells us that a three-story multifamily at 71 Stuyvesant Avenue in Bed Stuy has sold for $3,800,000, setting a new record for multifamily buildings in the neighborhood. The property last changed hands for $540,000 in 2010, after selling at a foreclosure auction a few months before, according to public records. The 6,200-square-foot apartment house has 12 units and sits near the corner of Stuyvesant and Dekalb Avenues. Until now, the most expensive multifamily sale was 281 Tompkins Avenue, which sold for $3,300,000 in January 2013.
A percentage of the huge and hotly debated Rheingold Brewery development site in Bushwick has just sold for $11,250,000, according to public records. The collection of nearly 50 commercial properties includes the former brewery at 930 Flushing, as well as a long list of small adjacent commercial properties on Stanwix Street, Melrose Street, Monteith Street, and Flushing and Bushwick avenues. The buyer is RP Acquisitions LLC, which we’re guessing is an arm of Read Property, the developer that already owns the site. The deed transfers 12.5 percent of the property to this LLC, which explains the low sale price. (more…)
Dixon is no longer buying only houses in Brooklyn but has moved into large apartment buildings in a huge way, snapping up at least $40,000,000 worth of commercial property in Brooklyn in one month, according to public records and sources.
In June, working with partner Excelsior Equities, Dixon acquired 442-446 Decatur Street, pictured above, 263-265 Linden Street, 255-261 Linden Street, 770 St. Marks Avenue, 637 St. Marks Avenue, 24-30 Rogers Avenue, and 75 MacDonough Street, all in Bed Stuy, Bushwick and Crown Heights.
The change in strategy allows Dixon to rapidly increase the scale of its operations, to buy at a bigger discount, and will also give the company cash flow to service debt, a source who preferred to remain anonymous told us. “If they buy bigger properties, it gives them more scale and they can get a discount due to rent stabilization,” he said. (more…)
Welcome to the Hot Seat, where we interview people involved in real estate, architecture, development and design. Introducing Ofer Cohen, founder and president of TerraCRG, a commercial brokerage devoted to Brooklyn properties.
Brownstoner: Can you talk about how you first started TerraCRG?
Ofer Cohen: Melissa DiBella and I started the company in January of 2008, and little did we know this would be the greatest recession since the Depression six or seven months later. But really I felt the need to start a company that would focus only on commercial transactions and only on Brooklyn.
A few months after we started, the recession hit, Leman Brothers crashed, and we had to really make what we could out of that period — which for us, was concentration on distressed assets and stalled development sites. When the market started to recover, we were already well positioned to take advantage of that recovery. Early in the recession, we realized the biggest stress was in development. Banks stopped funding construction loans, and a lot of developers couldn’t finish their projects or couldn’t start. It was how we cut our teeth in this development market. We were fortunate to develop a lot of great relationships with banks and developers, and really learn the Brooklyn market from that. Since coming out of the recession, we’ve sold over 1,600,000 buildable square feet in Brooklyn. And we believe it was a result of our experience during the recession.
Another Brooklyn gas station may bite the dust. In Crown Heights, Massey Knakal is marketing a BP station on Bedford between Lincoln and Eastern Parkway as a development site, according to Real Estate Weekly. (more…)
Vice Media is moving out of its new offices on North 11th Street and spending $20,000,000 to renovate a 60,000-square-foot building on Kent Avenue and South 2nd Street, Crain’s and WSJ reported. Its space at 90 North 11th Street, previously occupied by vintage clothing store Beacon’s Closet, is part of a former bus depot that runs from North 10th to North 11th streets between Berry and Wythe, which is being razed to make way for a 12-story, 100,000-square-foot retail and office building.
The developer, Cayuga Capital, is forcing Vice and Fast Ashley’s Studios out of the complex, as The Real Deal reported in April. The company has expanded twice since February, including taking over the Beacon’s Closet space in March.
Vice’s new South ‘Burg offices will feature production facilities and have full broadcast capabilities. “Brooklyn is our home and we’re already hard at work developing a freaky, space-age utopia that will give today’s creative visionaries a place to produce astonishing stories and leave their indelible thumbprint on the annals of history,” a spokesman told the Journal.
The state is also granting the company $6,500,000 in tax incentives if it adds 525 new employees to its current staff of 400. We’re guessing the new location is 285 Kent Avenue, a 45,000-square-foot warehouse on Kent between South 2nd and South 3rd Streets (pictured).
A huge commercial property near the Red Hook waterfront is in contract after asking $22,000,000, according to an agent close to the deal. The 100,000-square-foot site at 62-64 Ferris Street (pictured) is currently being used as a parking lot and is zoned for manufacturing. A building as large as 200,000 square feet could be constructed on the site. The property last sold in 2004 for $2,550,000, according to public records.
About a block away is another large Red Hook development site for sale. The property at 145-165 Wolcott Street is an 80,000-square-foot former bus depot asking $24,000,000. A potential developer could build up to 135,000 square feet there, according to PropertyShark. Realty Collective is the listing agent for both sites.
Update: Italian developer Est4te Four is the buyer of 62 Ferris Street, along with neighboring 219 Sullivan Street, according to the Brooklyn Eagle.
Jared Kushner and LIVWRK have made a deal to buy a large development site on 3rd Street next to the Gowanus Canal for $70,000,000 to $80,000,000, The Real Deal reported. The 133,000-square-foot property at 175-225 3rd Street allows for a commercial development of up to 300,000 square feet, but a source told The Real Deal that a million-square-foot residential development could be built if the site is rezoned. That would rival Lightstone’s planned 700-unit rental project at 363 Bond Street, just across the canal.
The block-long site has 600 feet of frontage on 3rd Street between 3rd Avenue and the canal and could have up to 150,000 square feet of retail. Whole Foods is across the street, and “in the shopping center world, having Whole Foods as an anchor is like going to the ball with one of the belles,” one commercial broker told TRD. The site is also right next to the graffiti-covered Gowanus Batcave, which is being slowly decontaminated by owner Joshua Rechnitz. The seller is a family who has owned the two properties for over 60 years. Verizon currently parks its telecom trucks in the two vacant lots.
LIVWRK and Kushner, along with RFR Realty and Invesco Real Estate, are, of course, the team that is developing the former Jehovah’s Witnesses Watchtower printing properties into a 1.2-million-square-foot office campus called Dumbo Heights.
Rezoning commercial property in Gowanus to residential has been controversial and there is no guarantee. Councilman Brad Lander recently ripped into developers who buy Gowanus property at residential prices thinking they will be able to rezone:
“Let me be clear: Those who are paying big price tags for industrial buildings in Gowanus and demolishing historic structures on the assumption that they will be able to build market-rate condo buildings like those on 4th Avenue are making a big mistake,” he said.
These three low-rise buildings on Atlantic Avenue in Clinton Hill are being marketed as a development site for $12,000,000. 907-917 Atlantic Avenue is a 14,000-square-foot lot between St. James Place and Grand Avenue. Marcus & Millichap is marketing the site, which allows for up to 40,000 buildable square feet. Zoning is mixed commercial and residential and restricts potential building height to seven stories (75 feet). Seems like a lot of money, but Clinton Hill is getting pricey. GMAP
An empty lot in the “triangle” between Flushing, Broadway and Bushwick Avenue in Bushwick is up for sale as a development site. The double-wide lot at 25 Fayette Street has 12,818 buildable square feet and is asking $2,100,000.
It could be a mixed-use building or a boutique hotel, according to TerraCRG, which is marketing the property. What would you like to see here?
Photo by Christopher Bride for PropertyShark
A 7,600-square-foot property on Broadway in the far reaches of Bushwick under the J,M,Z trains is for sale for $2,650,000. TerraCRG is marketing the property at 1787-1793 Broadway between Pilling and Granite streets, which at one point housed a one-story 99 cent store.
Potentially, a developer could construct a building as large as 22,800 square feet on the site, and the property has 15,600 square feet of air rights. Although property prices in Bushwick are heating up, we’re a little surprised to see something priced this high at the far eastern edge of the nabe.
There are plenty of empty storefronts in the area, and the elevated train is extremely loud. But the property could be much more valuable if the city upzones the area, as de Blasio promised in his affordable housing plan.