$21.6M paid to Property Markets Group for Orange Management dev site in Gowanus
Ido Paul Amit through the entity Third Street Gowanus Owner LLC paid $21.6 million to Property Markets Group through the entity Third Street Holdings, LLC for the midblock development site at 125 3rd Street in Gowanus, Brooklyn, where Andrew Bradfield’s Orange Management filed plans last year for two buildings, as PincusCo reported at the time.
Orange Management, on November 15, filed two permit applications for the construction of an 84-unit, 73,135-square-foot mixed-use building at 129 3rd Street and a 29-unit, 26,527-square-foot mixed-use building at 136 2nd Street.
The sale closed on February 25, 2022 and was recorded on March 11, 2022.
The property
The 125 3rd Street parcel has frontage of 40 feet and is 190 feet deep with a total lot size of 9,175 square feet. The lot is irregular. The zoning is M2-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $228,000.
Violations and lawsuits
The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations in the last year.
Development
On these lots, there is one active new building construction project for an 84-unit, 89,203-square-foot R-2 building. The project was developed by Andrew Bradfield with plans filed November 15, 2021 and it has not been permitted yet.
The neighborhood
In Gowanus, the bulk, or 38 percent of the 11.5 million square feet of built space are industrial buildings, with 1-4 family buildings next occupying 17 percent of the space. In sales, Gowanus has had very little sales volume relative to other neighborhoods with $205.4 million in sales volume in the last two years. For development, Gowanus is the 10th most active neighborhood among other neighborhoods. It had 4.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 35 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of one of the 10 commercial properties representing 18,500 square feet of the 58,433 square feet. The identified owner is Monadnock Development. There are three active new building construction projects totaling 437,900 square feet. The largest is a 301-unit, 316,634-square-foot R-2 building developed by Frank Dubinsky with plans filed December 8, 2021 and it has not been permitted yet. Another is a 29-unit, 32,063-square-foot R-2 building developed by Andrew Bradfield with plans filed November 15, 2021 and it has not been permitted yet.
The majority, or 48 percent of the 65,513 square feet of built space are industrial buildings, with office buildings next occupying 32 percent of the space.
Surrounding
Within a 400-foot radius of 125 3rd Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, two were in new building development. There were two new building permit applications. The most recent of these two items was a filing on December 8, 2021 for a 265,987-square-foot R-2 building with 301 residential units at 155 3rd Street.
One of those three items was a loan which Monadnock Development borrowed $5 million from CUNA Mutual Group secured by the 18,500-square-foot, one-unit office building (O1) on 155 3rd Street on March 19, 2021.
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