Brookfield Properties pays $17.9M to Urban Storage Fund for industrial in Crown Heights

Brookfield Properties through the entity Oe 1956 Atlantic Ave LLC paid $17.9 million to Urban Storage Fund through the entity Urban-Sers Atlantic, LLC for industrial building (E7) at 1956 Atlantic Avenue in Crown Heights, Brooklyn.
The deal closed on July 27, 2022 and was recorded on August 9, 2022.The property has 58,600 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $305 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 October 6, 2015, for $3.7 million. The signatory for Urban Storage Fund was Robert E. Poole. The signatory for Brookfield Properties was David Cohen.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Brookfield Properties purchased 21 properties in 14 transactions for a total of $1.1 billion and sold eight properties in five transactions for a total of $745.5 million over the past 24 months.
The seller Urban Storage Fund had not purchased any other properties and sold two properties in two transactions for a total of $77.9 million over the same time period. The 58,600-square-foot property generated revenue of $1.3 million or $22 per square foot, according to the most recent income and expense figures.

The property

The 1956 Atlantic Avenue parcel has frontage of 195 feet and is 100 feet deep with a total lot size of 19,500 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $8.4 million.The most recent loan totaled $10.6 million and was provided by PNC Bank on July 2, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project for a N/A-unit, 17,890-square-foot S-1 building. The project was developed by James Goonan with plans filed June 17, 2014 and permitted November 28, 2018.

The neighborhood

In Crown Heights, the bulk, or 38 percent of the 46.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.2 times the average sales volume among other neighborhoods with $405.2 million in sales volume in the last two years and is the 14th highest in Brooklyn. For development, Crown Heights has 2.9 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 23 commercial properties representing 70,920 square feet of the 93,302 square feet. The largest owner is Urban Storage Fund, followed by Abraham Grunhut and then Joe Stein.
There are two active new building construction projects totaling 19,890 square feet. The largest is a N/A-unit, 17,890-square-foot S-1 building developed by James Goonan with plans filed June 17, 2014 and permitted May 26, 2015. The second largest is a zero-unit, 2,000-square-foot M building developed by Avi Baranes with plans filed October 11, 2019 and permitted February 26, 2021.

the majority, or 64 percent of the 93,302 square feet of built space are industrial buildings, with walkup buildings next occupying 13 percent of the space.

The buyer

The PincusCo database currently indicates that Brookfield Properties owned at least 139 commercial properties in New York City with 51,667,224 square feet and a city-determined market value of $8.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $9.2 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 86 percent of the 51,667,224 square feet of built space are office properties, with elevator properties next occupying 11 percent of the space. The bulk, or 84 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

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