Boyd Watterson buys 11 Metrotech from Brookfield for $121M, second of $306.5M deal

Boyd Watterson, a Cleveland-based investment group recently purchased Brookfield Properties’ ground lease of 11 Metrotech Center for $121 million, public records show.

The deal closed on March 25, 2022 and was recorded on April 14, 2022.

Callie Haines, executive vice president of Brookfield Properties signed on the deal through the entity Forest City Tech Place Associates II, LLC.  Joseph Capra signed for Boyd Watterson through the entity Brooklyn NY II SGF, LLC.

In February, Boyd Watterson completed the sale of neighboring 9 Metrotech Center from Brookfield Properties for $185.5 million, as PincusCo reported.

The Real Deal first reported that a sale of 9 and 11 Metrotech Center was in the works back in January with the deal reportedly costing Boyd Watterson a total of $310 million. The two transactions total $306.5 million in transfer records.

Alternate addresses for the property include 157 Flatbush Avenue Extension, 132 Flatbush Avenue Extension and 112 Flatbush Avenue Extension in Downtown Brooklyn.

The three properties that compose 11 Metrotech Center have 266,000 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $454 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.)

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 157 Flatbush Avenue Ext.

Prior sales and revenue

The three properties with a total of 266,000 square feet of built space generated revenue of $21.6 million per year or $81 per square foot. The sale price per square foot was $455.

The property

The 157 Flatbush Avenue Ext parcel has frontage of 105 feet and is 80 feet deep with a total lot size of 28,950 square feet. The lot is irregular. The zoning is C6-1A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $35.8 million.
The 132 Flatbush Avenue Ext parcel has frontage of 238 feet and is 100 feet deep with a total lot size of 18,916 square feet. The lot is irregular. The zoning is C6-1A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $24.5 million.
The 112 Flatbush Avenue Ext parcel has frontage of 45 feet and is 109 feet deep with a total lot size of 6,670 square feet. The lot is irregular. The zoning is C6-1A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $9.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received 15 DOB violations and $1,000 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Downtown Brooklyn, the bulk, or 36 percent of the 26.8 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 29 percent of the space. In sales, Downtown Brooklyn has 1.3 times the average sales volume among other neighborhoods with $365.7 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Downtown Brooklyn has 2.9 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 157 Flatbush Avenue Ext, PincusCo has identified the owners of one of the three commercial properties representing 141,000 square feet of the 266,000 square feet. The identified owner is Brookfield Properties. There are no active new building construction projects on this tax block.

all properties are office.

Surrounding

Within a 400-foot radius of 157 Flatbush Avenue Ext, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Boyd Watterson Asset Management bought the 407,400-square-foot, one-unit office building (O3) on 303 Bridge Street for $185.5 million from Brookfield Properties on February 22, 2022.

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