Brookfield sells landmarked commercial buildings in Downtown Brooklyn to Chaskel Landau for $10M

Brookfield Properties through the entity Duffield Street Housing Co., Inc. sold the office building (O5) at 182-188 Duffield Street in Downtown Brooklyn, Brooklyn, to Chaskel Landau through the entity 188 Duffield LLC for $10 million. The properties are landmarked by the city.
The deal closed on December 13, 2022 and was recorded on December 27, 2022. The property has 10,496 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $952 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 December 7, 2018, as part of a large portfolio. The signatory for Brookfield Properties was Ketan Patel. The signatory for Chaskel Landau was Chaskel Landau.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Chaskel Landau purchased four properties in four transactions for a total of $18.4 million and has no record it sold any properties over the past 24 months.
The seller Brookfield Properties purchased 20 properties in 13 transactions for a total of $1 billion and sold eight properties in five transactions for a total of $745.5 million over the same time period. The 10,496-square-foot property generated revenue of $374,392 or $36 per square foot, according to the most recent income and expense figures.

The property

The 182 Duffield Street parcel has frontage of 98 feet and is 100 feet deep with a total lot size of 9,865 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $1.3 million.

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

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 39 percent of the 24.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 25 percent of the space. In sales, Downtown Brooklyn has 3.8 times the average sales volume among other neighborhoods with $1.3 billion in sales volume in the last two years and is the 2nd highest in Brooklyn. For development, Downtown Brooklyn has 3.5 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 19 commercial properties representing 2,736 square feet of the 520,683 square feet. The identified owner is Michaels Organization.
On the tax block, there was one new building construction project filed totaling 176,121 square feet. It is a 227-unit, 176,121-square-foot R-2 building developed by Kristina Vagen with plans filed June 25, 2020 and permitted April 28, 2022.

The majority, or 99 percent of the 471,198 square feet of built space are office buildings, with mixed-use buildings next occupying 1 percent of the space.

The seller

The PincusCo database currently indicates that Brookfield Properties owned at least 48 commercial properties in New York City with 43,969,617 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $10.3 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and ING Capital respectively. Within the portfolio, the bulk, or 84 percent of the 43,969,617 square feet of built space are office properties, with elevator properties next occupying 11 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

The buyer

The PincusCo database currently indicates that Chaskel Landau owned at least 24 commercial properties in New York City with 125,869 square feet and a city-determined market value of $21 million. (Market value is typically about 50% of actual value.) The portfolio has $38.8 million in debt, with top three lenders as Broadview Capital, S3 Capital, and Signature Bank respectively. Within the portfolio, the bulk, or 64 percent of the 125,869 square feet of built space are walkup properties, with mixed-use properties next occupying 20 percent of the space. They are all located in Brooklyn.

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