Capstone acquires DoBro office building from Savanna in transfer valued at $86M

Capstone Equities through the entity CB 141 Willoughby Owner LLC acquired control from Savanna through the entity 141 Willoughby Mezz Sub, LLC in a transaction valued at $86 million for the office building (O4) at 141 Willoughby Street and an adjacent park space in Downtown Brooklyn.
The deal closed on July 22, 2025 and was recorded on August 6, 2025. The office building has 343,701 square feet of built space and 26,550 square feet of additional air rights according to a PincusCo analysis of city data. The sale price per built square foot is $250 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 building had $181 million of senior construction loan debt issued by Pimco, and an additional $83 million in mezzanine debt, bringing the total to a reported $264 million. The Commercial Observer reported in June 2025 that Capstone had scheduled a UCC foreclosure auction. The Promote reported in February that Capstone and partner BH3 Management bought the debt for approximately $107 million.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Capstone Equities purchased four properties in four transactions for a total of $206 million and sold one property in one transaction for a total of $32 million over the past 24 months.
The seller Savanna purchased two properties in two transactions for a total of $340 million and sold four properties in four transactions for a total of $324 million over the same time period. Out of the two properties, one with a total of 343,701 square feet of built space generated revenue of $20 million per year.

The property

The office building in Downtown Brooklyn has 343,701 square feet of built space and 26,550 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 132 feet and is 200 feet deep with a total lot size of 18,026 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $105.3 million. The most recent loan totaled $181 million and was provided by PIMCO on May 7, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $600 in OATH penalties in the last year.

The neighborhood

In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has near average sales volume among other neighborhoods with $312.8 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Downtown Brooklyn has 1.9 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Brooklyn. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 141 Willoughby Street, PincusCo has identified the owners of two of the three commercial properties representing 332,608 square feet of the 332,608 square feet. The identified owner is Savanna.
On the tax block, there was one new building construction project filed totaling 310,077 square feet. It is a 310,077 square-foot business (B) building submitted by Savanna and filed by Gregory Jaffe with plans filed May 29, 2019 and permitted August 11, 2020.

The majority, or 100 percent of the 332,608 square feet of built space are office buildings, with development buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Savanna owned at least 10 commercial properties in New York City with 1,760,126 square feet and a city-determined market value of $395 million. (Market value is typically about 50% of actual value.) The portfolio has $456.4 million in debt, with top three lenders as PIMCO, Aareal Capital, and Cottonwood Management respectively. Within the portfolio, the bulk, or 81 percent of the 1,760,126 square feet of built space are office properties, with O4 properties next occupying 19 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 38 percent of the space.

The buyer

The PincusCo database currently indicates that Capstone Equities owned at least six commercial properties in New York City with 792,058 square feet and a city-determined market value of $157.8 million. (Market value is typically about 50% of actual value.) The portfolio has $120.5 million in debt, with top three lenders as Argentic Investment Management, Aareal Capital, and Ellington Management Group respectively. Within the portfolio, the bulk, or 52 percent of the 792,058 square feet of built space are hotel properties, with office properties next occupying 48 percent of the space. The bulk, or 52 percent of the built space, is in Manhattan, with Brooklyn next at 48 percent of the space.

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