Battery energy storage firm NineDot Energy pays $6M for mixed-use in East New York, 5th purchase

Battery energy storage firm NineDot Energy through the entity Blue Aster Landco LLC paid $6 million to Paul Bartelotti through the entity Bergen Realty, Inc. for the mixed-use building (K1) at 69 Hinsdale Street in East New York, Brooklyn. The expected use redevelopment.
The deal closed on August 12, 2024 and was recorded on September 9, 2024. The property has 5,873 square feet of built space and 29,599 square feet of additional air rights for a total buildable of 35,448 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,021 and the price per buildable square foot is $169 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 signatory for Paul Bartelotti was Paul Bartelotti. The signatory for NineDot Energy was David Arfin. The contract date was August 9, 2024. The buyer, NineDot Energy, is in care of Urban Future Lab, a Brooklyn-based climatech incubator that is part of the NYU Tandon School of Engineering and the NYU Tandon Future Labs. It has raised $2.3 billion in funding, according to its website.

According to NineDot Energy, the company was, “Founded in 2015, currently based at the NYU Urban Future Lab in Brooklyn and backed by The Carlyle Group and Manulife, we’re committed to providing clean energy solutions to the New York area and beyond.”

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer NineDot Energy purchased four properties in four transactions for a total of $12.1 million and has no record it sold any properties over the past 24 months.
The seller Paul Bartelotti had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in East New York has 5,873 square feet of built space and 29,599 square feet of additional air rights for a total buildable of 35,448 square feet according to a PincusCo analysis of city data. The parcel has frontage of 157 feet and is 120 feet deep with a total lot size of 17,724 square feet. The lot is irregular. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.1 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 East New York, The bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 1.2 times the average sales volume among other neighborhoods with $320.4 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, East New York is the 8th most active neighborhood among other neighborhoods. It had 5.1 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 was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing zero square feet of the 79,248 square feet. The identified owner is City Of New York.
On the tax block, there was one new building construction project filed totaling 2,881 square feet. It is a 2,881 square-foot industrial (F-2) building submitted by Maria De Carmen Morocho with plans filed August 14, 2015 and permitted September 9, 2019.

The majority, or 80 percent of the 79,248 square feet of built space are specialty buildings, with mixed-use buildings next occupying 10 percent of the space.

The buyer

The PincusCo database currently indicates that Ninedot Energy owned at least three commercial properties in New York City with 13,100 square feet and a city-determined market value of $2.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 69 percent of the 13,100 square feet of built space are retail properties, with office properties next occupying 31 percent of the space. They are all located in Brooklyn.

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