Brookfield signs $25.3M refi loan for industrial in Red Hook

Brookfield Properties through the entity Bprep 55 Bay Street LLC as borrower signed a refi loan with lender Wells Fargo, Bank of America, and Citibank valued at $25.3 million for the industrial building (E1) at 537 Columbia Street in Red Hook, Brooklyn.
The deal closed on March 3, 2025 and was recorded on March 14, 2025. The prior lender was U.S. Bank which held debt that had an original loan amount of $25.3 million.The property has 95,787 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $263 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 Brookfield Properties was Sabrina Khabie. The signatory for Wells Fargo , Bank of America , and Citibank was Alicia L. Mioli, Robert Fenstemaker, and John G. Nicol.

Prior sales and revenue

The 95,787-square-foot property generated revenue of $3.2 million or $33 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Red Hook has 95,787 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 440 feet deep with a total lot size of 88,000 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 $15.8 million. The most recent loan totaled $14 million and was provided by Bank OZK on July 11, 2019.

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 received $2,250 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 16, 2023. 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 Red Hook, The bulk, or 40 percent of the 11.8 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 24 percent of the space. In sales, Red Hook has near average sales volume among other neighborhoods with $272.3 million in sales volume in the last two years and is the 24th highest in Brooklyn. For development, Red Hook has near average amount of major developments among other neighborhoods and is the 14th highest in Brooklyn. It had 1.2 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.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 95,787 square feet of the 95,787 square feet. The identified owner is Brookfield Properties.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 95,787 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Brookfield Properties owned at least 56 commercial properties with 4,799 residential units in New York City with 24,876,733 square feet and a city-determined market value of $5.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $11.6 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and ING Capital respectively. Within the portfolio, the bulk, or 60 percent of the 24,876,733 square feet of built space are office properties, with elevator properties next occupying 20 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.

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