Bushwick property sells for $8.6M, restricted to nonprofit or community service uses, deed says

UPDATED 3:40 p.m., October 7, 2024:  The entity Bushwick Management Group, LLC paid $8.6 million to Bushwick Economic Development Corporation for the 62-unit specialty building (N2) at 629 Chauncey Street in Bushwick, Brooklyn.
The deal closed on September 16, 2024 and was recorded on October 3, 2024. The property has 24,622 square feet of built space and 5,750 square feet of additional air rights for a total buildable of 30,375 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $347 and the price per buildable square foot is $281 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 Bushwick Economic Development Corporation was Rufina George. The signatory for the buyer was Daniel Blanco. The contract date was July 14, 2022. This is not the same Daniel Blanco of Broad Street Development.

The seller was previously involved in litigation over nonpayment of rent in Upper Manhattan 555 West 174th Street 650787/2021.  The property comes with a deed restriction the City of New York added when it sold the property in December 1980 to the Bushwick Economic Development Corporation for $32,000 and gave a $13,500 purchase money mortgage. “The development and use of the subject property shall be restricted and limited to not-for-profit community development and social service purposes, and the purchaser and any successor in interest shall not use the premises for any other purpose.”

Prior sales and revenue

The seller Bushwick Economic Development Corporation had not purchased any other properties and had not sold any properties over the past two years.

The property

The specialty building with 62 residential units in Bushwick has 24,622 square feet of built space and 5,750 square feet of additional air rights for a total buildable of 30,375 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 125 feet deep with a total lot size of 12,500 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million.

Violations and lawsuits

The property was involved in one court case and zero bankruptcies over the past two years. The court case was a $7 million judgment concerning a leave to sell filed on December 21, 2023, by Bushwick Economic Development Corporation against Daniel Blanco, which is part of the process for a nonprofit to sell real property. In addition, according to city public data, the property has received one DOB violation and $3,400 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 $1 million on this tax lot.

The neighborhood

In Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2 times the average sales volume among other neighborhoods with $506.7 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Bushwick has had very little major development activity relative to other neighborhoods.It had 768,384 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing zero square feet of the 82,978 square feet. The identified owner is NYC Department Of Housing Preservation And Development.
On the tax block, there was one new building construction project filed totaling 7,844 square feet. It is a eight-unit, 7,844 square-foot residential (R-2) building submitted by Rona Reodica with plans filed March 8, 2021 and it has not been permitted yet.

The majority, or 81 percent of the 82,978 square feet of built space are specialty buildings, with retail buildings next occupying 19 percent of the space.

Correction: A previous version of this post incorrectly identified Broad Street Development, led by a different Daniel Blanco, as the buyer. Broad Street Development is not involved in this transaction.