Brookfield pays $24.7M to Green Street for industrial in Maspeth

Brookfield Properties through the entity IV3 55-40 44th Street LLC paid $24.7 million to Green Street Group through the entity Jbs Equities, LLC for the industrial building at 55-40 44th Street in Maspeth, Queens and two adjacent parcels.
The deal closed on April 14, 2022 and was recorded on May 3, 2022. The three properties have 24,258 square feet of built space and 109,014 square feet of additional air rights for a total buildable of 133,108 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,017 and the price per buildable square foot is $185 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 Green Street Group was Daniel Greenberg. Daniel Greenberg is the principal of Green Street Group.

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 55-40 44th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Brookfield Properties purchased 19 properties in 14 transactions for a total of $1 billion and sold seven properties in four transactions for a total of $555.5 million over the past 24 months.
The seller Green Street Group purchased two properties in two transactions for a total of $5 million and had not sold any properties over the same time period. Out of the three properties, one with a total of 24,258 square feet of built space generated revenue of $448,070 per year.

The property

The 55-40 44th Street parcel has frontage of 253 feet and is 183 feet deep with a total lot size of 45,459 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 $2.2 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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the three buildings received an initial certificate of occupancy in the last ten years. 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 Maspeth, the bulk, or 46 percent of the 38.7 million square feet of commercial built space are 1-4 family buildings, with industrial buildings next occupying 39 percent of the space. In sales, Maspeth has 1.9 times the average sales volume among other neighborhoods with $538 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Maspeth has 1.9 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Queens. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 24,258 square feet of built space are industrial buildings.

The seller

The PincusCo database, which is incomplete, currently indicates that Green Street Group owned at least three commercial properties with 3,000 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12.3 million in debt, borrowed from Bank Leumi. Within the portfolio, the bulk, or 100 percent of the 3,000 square feet of built space are mixed-use properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Brookfield Properties owned at least 44 commercial properties with 39,461,166 square feet and a city-determined market value of $5.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $9.1 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and Athene Annuity And Life Company respectively. Within the portfolio, the bulk, or 87 percent of the 39,461,166 square feet of built space are office properties, with residential elevator properties next occupying 10 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

Surrounding

Within a 400-foot radius of 55-40 44th Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which GWL Realty Advisors bought the 70,500-square-foot industrial (F9) on 55-30 46th Street for $57.2 million from Gary J. Korn on October 5, 2021.

Direct link to Acris document. link