Canyon Partners buy stake valued at $30.5M in Tavros, Charney’s 261-unit project in Gowanus
Canyon Partners through the entity Canyon OZF Douglass L.P. acquired an interest in Tavros Capital and Charney Companies’ 261-unit development project at at 251 Douglass Street in Gowanus, Brooklyn.
The deal closed on July 19, 2023 and was recorded on July 26, 2023.
On the tax lot, Tavros Capital and Charney Companies filed plans for a 261-unit, 223,886 square-foot residential (R-2) building submitted by Tavros Capital and filed by Dov Barnett with plans filed November 16, 2021 and permitted April 29, 2022.
Tavros Capital and Charney Companies bought the property on April 14, 2020, for $22.5 million.
This is an entity level, 55.15 percent sale valued at $30.55 million. Canyon is an investment group and lender. It provided a $193.6 million loan in Sunnyside last month.
Canyon, Tavros and Charney are also partners on 585 Union Street in Gowanus, a 224-unit project three block south.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Canyon Partners had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Tavros Capital purchased two properties in two transactions for a total of $170.3 million and sold three properties in one transactions for a total of $156.6 million over the same time period.
The property
The zoning is M1-4/R7X which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The most recent loan totaled $25.4 million and was provided by CIT Bank on December 21, 2021.
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 $7,490 in ECB penalties in the last year.
The neighborhood
In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 1.7 times the average sales volume among other neighborhoods with $603.3 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Gowanus is the 6th most active neighborhood among other neighborhoods. It had 4.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 50 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 2,500 square feet of the 96,884 square feet. The identified owner is Tavros Capital.
On the tax block, there were two new building construction projects totaling 243,661 square feet. The largest is a 261-unit, 223,886 square-foot residential (R-2) building submitted by Tavros Capital Partners and filed by Dov Barnett with plans filed November 16, 2021 and permitted April 29, 2022. The second largest is a 19,775 square-foot storage (S-2) building submitted by Jack Elo with plans filed June 20, 2017 and it has not been permitted yet.
The majority, or 51 percent of the 96,884 square feet of built space are office buildings, with industrial buildings next occupying 49 percent of the space.
The seller
The PincusCo database currently indicates that Charney Companies owned at least 14 commercial properties. The portfolio has $56.8 million in debt, borrowed from Arbor Realty Trust and Santander Bank. Within the portfolio, the bulk, or 46 percent of the 140,924 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 58 percent of the built space, is in Queens, with Brooklyn next at 42 percent of the space.
The PincusCo database currently indicates that Tavros Capital owned at least seven commercial properties. The portfolio has $100.1 million in debt, with top three lenders as ACORE Capital, Centennial Bank, and Citibank respectively. Within the portfolio, the bulk, or 91 percent of the 64,538 square feet of built space are industrial properties, with C0 properties next occupying 7 percent of the space. They are all located in Brooklyn.
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