Argentic takes Greenwood Heights industrial by $7.7M deed-in-lieu

Argentic Investment Management through the entity Msc 2019-H7 Greenwood Heights LLC acquired the industrial building (F5) at 413 20th Street in Greenwood Heights, Brooklyn, through a deed-in-lieu of foreclosure. The transaction value was $7.7 million, which may represent the value of defaulted loan and not necessarily the value of the asset. The seller was Thomas McCloskey through the entity 413-421 20th Street LLC.
The deal closed on June 30, 2024 and was recorded on August 1, 2024. The property has 16,649 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $462 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on November 21, 2016, for $3.8 million. The signatory for Thomas McCloskey was Thomas McCloskey. The signatory for Argentic Investment Management was John Mayfield and Bruce Rickert. The contract date was June 30, 2024. This is a deed-in-lieu of foreclosure. The seller borrowed $6.5 million from Argentic in 2019.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Argentic Investment Management purchased seven properties in one transaction for a total of $20.5 million and sold one property in one transaction for a total of $21.5 million over the past 24 months.
The seller Thomas McCloskey had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Greenwood Heights has 16,649 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 100 feet deep with a total lot size of 12,521 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.7 times the average sales volume among other neighborhoods with $440.2 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Greenwood Heights has 1.6 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 14 commercial properties representing 21,664 square feet of the 122,361 square feet. The largest owner is Benjamin & Josefa Espinoza, followed by Laura De Vacca and then Mavis Hay.
There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 122,361 square feet of built space are industrial buildings, with walkup buildings next occupying 44 percent of the space.

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