Bridge Investment Group pays $105.2M to PepsiCo for industrial in East Williamsburg

Bridge Investment Group through the entity Blusv II NY 222 Morgan Ave LP paid $105.2 million to PepsiCo through the entity Rolling Frito-Lay Sales, LP for the industrial building (F4) at 222 Morgan Avenue in East Williamsburg, Brooklyn. The expected use is ground up development.
The deal closed on December 17, 2024 and was recorded on December 26, 2024. The property has 41,900 square feet of built space and 371,160 square feet of additional air rights for a total buildable of 412,400 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,511 and the price per buildable square foot is $255 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 7, 2003, for $8.7 million. The signatory for PepsiCo was James Kelley and J. Carson Trimble. The signatory for Bridge Investment Group was Jonathan Slager. The contract date was October 21, 2024. Commercial Observer reported on the sale yesterday.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bridge Investment Group had purchased any other properties and sold one property in one transaction for a total of $7.5 million over the past 24 months.
The seller PepsiCo purchased three properties in one transaction for a total of $7.8 million and had not sold any properties over the same time period.

The property

The industrial building in East Williamsburg has 41,900 square feet of built space and 371,160 square feet of additional air rights for a total buildable of 412,400 square feet according to a PincusCo analysis of city data. The parcel has frontage of 382 feet and is 489 feet deep with a total lot size of 206,200 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $5.9 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 Williamsburg, The majority, or 62 percent of the 17.1 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 11 percent of the space. In sales, East Williamsburg has near average sales volume among other neighborhoods with $252 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, East Williamsburg has 1.6 times the average amount of major developments relative to other neighborhoods and is the 6th 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 10 percent of the neighborhood’s built space. There was one 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 seven of the 22 commercial properties representing 29,716 square feet of the 217,164 square feet. The largest owner is Helen Schwartz, followed by Terreno Realty Corporation and then Shao Zhen Lin.
On the tax block, there was one new building construction project filed totaling 6,460 square feet. It is a 6,460 square-foot mercantile (M) building submitted by Penn Ku with plans filed August 1, 2019 and it has not been permitted yet.

The majority, or 100 percent of the 217,164 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that PepsiCo owned at least three commercial properties in New York City with 0.0 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are development properties, with industrial properties next occupying 0 percent of the space.

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