A real estate firm named JEMB Realty bought a parking lot in downtown Brooklyn for $38,464,188. If that seems like a staggering amount to pay for a parking lot, well, it’s located at 420-428 Albee Square, right across the street from City Point. It’s got 185,000 buildable square feet, The Real Deal reported.
That works out to be $205 per buildable square foot. No word yet on what is planned, but we’re guessing a mixed-use building. The deal closed March 26.
Retail rents have tripled on Court Street in the last five years, according to Crain’s, kicked off when Trader’s Joes moving into the old Savings Bank building at the corner of Court and Atlantic.
Rents are now $150 to $180 per square foot, “comparable to many streets in Manhattan,” vs. $35 to $50 a square foot five years ago, according to a CPEX study cited in the story. Private school LePort Schools recently leased 292 Court Street, a 16,000-square-foot building, for $500,000 a year.
The story says rents increased even more when J.Crew took space down the block at 151 Court Street. Except it hasn’t yet — which the story does not mention. Grocer Pacific Green is still in the space, and recently said it plans to shut its new location at 303 Court Street, leading to speculation J.Crew is looking elsewhere.
While the number of homes sold in Brooklyn in February may have plummeted due to lack of inventory, in January in the commercial world of large apartment buildings, it was a whole other story. The number of sales was up 120 percent compared to the same period a year earlier, said a report out from real estate firm Ariel Property Advisors.
The report counted multifamily buildings of 10 units or more that traded for at least $1,000,000. It was based on all data available from public records and other sources.
In January, there were 22 sales, vs. only 10 in January the year before. A total of 40 buildings traded hands in January, compared to only 17 in the same period a year earlier. The total dollar volume of sales was $239,985,000 in January, vs. $47,175,000, an increase of 409 percent.
In fact, more of these buildings were traded in Brooklyn than any other borough in January, by a wide margin. The Bronx was next with 22 buildings.
The price of land in Brooklyn has more than doubled in three years, Ofer Cohen, president and partner of Brooklyn commercial real estate company TerraCRG, told The New York Times.
We just traded a site on 4th Avenue for $250 a buildable foot, and I remember the sites that we were selling at the end of the recession, in 2011, were like $100, $110 a buildable foot. The price more than doubled. We sell development sites in Williamsburg now for $350, $365 a buildable foot. At the end of 2011 it was $150.
New developers are coming into Brooklyn because that’s where the growth is — rents have been increasing at about 10 percent a year over the past four years, vs. 4 percent in Manhattan, he said. Most of the new developments in Brooklyn — 95 to 98 percent — are rentals, not condos. There are 12,000 units in development in the borough right now, he said.
He also mentioned the big development at 19 Kent, which will be offices only. “It’s going to be the first ‘spec’ office development in Brooklyn,” he said. “The Heritage group is developing it.”
Above, a brick building at 470 4th Avenue, a large development site whose sale TerraCRG brokered earlier this year.
Last week an LLC called Buffalo Avenue Realty Associates picked up St. Mary’s Hospital at 170 Buffalo Avenue in the Weeksville neighborhood of Crown Heights for $19,500,000. The large private Catholic institution closed in 2005.
Surprisingly, it will not be converted into rentals or condos. The new owner has already leased the building to Prospect Park Nursing Home of 1455 Coney Island Avenue for $1,500,000 for 15 years, according to a tipster. It is around the corner from the Weeksville Heritage Center.
This yellow brick corner building at 240 St. Nicholas Avenue has been renovated with reclaimed wood paneling, oak floors, and stainless steel appliances and is for sale for $2,295,000. There is an owner’s duplex — unusual for a multi-family in Bushwick — four rental apartments and a two-car garage.
There’s also lots of FAR and the lot is 90 feet deep. At one point the building was a two-family with a doctor’s office. We couldn’t find a new C of O but permits indicate one for a five-family is in the works.
The building is located in a desirable part of Bushwick near the Dekalb L stop, close to bustling Wyckoff Avenue, Wyckoff Hospital and near the Ridgewood border. The current owners picked it up for $680,000 in January 2013. The configuration and size of the building is unusual, but if it sells near ask, it will be quite a jump for this type of building in the area.
Click through to the jump for more photos. What do you think of the renovations?
Jared Kushner’s Kushner Companies is buying Brooklyn Law School’s portfolio of six apartment buildings in Brooklyn Heights, all previously used for student housing, for $36,500,000, The Real Deal reported. The buildings are located at 89 Hicks Street (pictured), 18 Sidney Place, 144 Willow Street, 100 Pierrepont Street, and 27 and 28 Monroe Place.
Kushner snapped up the portfolio in a day after two other deals fell through, said the paper. The ask was originally $41,150,000. The other deals were for $41,000,000 and $40,000,000, so it looks like Kushner got a nice little discount by waiting. The company, which recently bought a property in Williamsburg, did the biggest deal in Brooklyn last year when it purchased the Witnesses printing plant and related buildings for $375,000,000.
Developers bought up $1,800,000,000 worth of Brooklyn land in 2013 to meet the increasing demand for apartments there, Real Estate Weekly reported. A total of 520 development sites changed hands across the borough, representing a 35 percent increase from the year before, said the story, citing the year-end report from Ariel Property Advisors.
Williamsburg saw the most sales with 74 properties changing hands for $284,000,000. Nearby in Bushwick and Bed Stuy, prices for some development sites more than doubled compared with prices in 2012. Overall, 1,388 properties in Brooklyn sold in 1,047 commercial transactions totaling $4,052,000,000. Multifamily sales rose 44 percent to 760 properties, and the dollar value of those trades increased 29 percent to $1,900,000,000. Whew, that’s a lot of zeros.
Brooklyn accounted for 40 percent of commercial sales in New York City in 2013, more than any other borough, according to a report Massey Knakal emailed us. The total number of commercial properties that traded in Brooklyn in 2013 was 1,443.
That was actually a slight decrease from the year before, down 2 percent. The average price per property was $2,500,000, a decrease of 24 percent from the year before, said the firm.
The numbers back up a recent story in Crain’s, which said that developers were increasingly interested in the outer boroughs rather than Manhattan. “We’re happy to go to the fringe because we think a lot of these areas are only a year or two away from becoming prime,” the story quoted Taconic Chief Investment Officer Kevin Davis as saying. “The meatpacking district used to be the edge where no one wanted to go, and it’s the same thing in areas now like Crown Heights.”
According to TerraCRG, the value of commercial sales was up 16 percent to $5,000,000,000. “A growing crop” of commercial developers are investing in formerly “fringe” areas of Brooklyn such as Bushwick, Sunset Park and Gowanus, as “the city’s hot residential market [pushes] gentrification outward,” said Crain’s.
“Brooklyn used to be a price alternative, but it’s now a real lifestyle choice,” the story quoted another real estate executive as saying. “When you understand the trends on employment, it’s the new media and tech tenants that are really absorbing the space, and they live and want to work in Brooklyn.”
A striking 1902 Renaissance Revival apartment building at 75 Macdonough Street is for sale for $3,200,000. The four-story, eight-unit building, which is called The Raleigh, was designed by architect William Debus. A good amount of the interior detail seems to be intact. The apartments are four- and five-bedrooms, Marcus & Millichap, which is handling the sale, told us. It was a Building of the Day in 2010. Click through to see some interior shots.
Downtown Brooklyn is really heating up: Commercial sales boomed across the borough with downtown in the lead in 2013, and about 14,000 new units of housing are in the works just in downtown alone. Compare that to the six years ended in 2012, when 6,500 new units of housing were created downtown, said DNAinfo.
A report out from the Downtown Brooklyn Partnership pointed out other recent changes to the area: 30 new restaurants and stores, the opening of two theaters, a new plaza, and plantings on Flatbush Avenue. In the works are a new library, BAM cinema, and the 651 rehearsal space.
“More than 3,300 housing units are currently under construction in downtown Brooklyn — 419 of which are affordable — and another 9,000 market-rate and 2,900 affordable units are in the planning stages for the neighborhood,” said DNAinfo.
Commercial sales increased 393 percent, to more than $5,000,000,000, across the whole borough in the last four years, according to a report from TerraCRG cited by The Real Deal. The area comprising downtown and Park Slope “had the borough’s highest dollar volume, with sales up 67 percent to $1.5 billion from last year,” said the publication.
A large but low-slung commercial building at the corner of Cortelyou and Stratford Roads in Ditmas Park has sold for $2,000,000, Ditmas Park Corner reported. Massey Knakal handled the sale of 1029-1035 Cortelyou Road and told the blog there were over 20 cash offers on the property. The 3,578 square foot property sits on a 60-foot-by-71-foot lot and sold above asking price at $559 per square foot.
Currently used as storage (and antique store on Saturdays only), the building could be used for retail or developed up to 8,416 square feet, according to the Massey Knakal listing. Considering the location, a mixed-use residential development seems likely. GMAP