City pays $32M to Acuity Capital Partners for two properties in Red Hook for school

The New York City School Construction Authority paid $32 million to Acuity Capital Partners through the entity 21 And 35 Delavan LLC for the corner industrial building at 21 Delavan Street in Red Hook, Brooklyn and development building at 35 Delavan Street in Red Hook, Brooklyn.
The deal closed on May 26, 2022 and was recorded on June 15, 2022. The two properties have 23,520 square feet of built space and 122,280 square feet of additional air rights for a total buildable of 145,800 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,360 and the price per buildable square foot is $219 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.)

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 21 Delavan Street.

Prior sales and revenue

Out of the two properties, one with a total of 23,520 square feet of built space generated revenue of $463,063 per year.

The property

The 21 Delavan Street parcel has frontage of 120 feet and is 200 feet deep with a total lot size of 24,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.1 million.The most recent loan totaled $31.5 million and was provided by Northwind Group on December 11, 2020.
The 35 Delavan Street parcel has frontage of 200 feet and is 180 feet deep with a total lot size of 36,000 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.3 million.The most recent loan totaled $31.5 million and was provided by Northwind Group on December 11, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have 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 Red Hook, the bulk, or 43 percent of the 10.2 million square feet of commercial built space are industrial buildings, with residential elevator buildings next occupying 25 percent of the space. In sales, Red Hook has 1.5 times the average sales volume among other neighborhoods with $405.2 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Red Hook has 4.1 times the average amount of major developments relative to other neighborhoods and is the 4th 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 37 percent of the neighborhood’s built space.

The block

On the tax block of 21 Delavan Street, PincusCo has identified the owners of two of the three commercial properties representing 23,520 square feet of the 137,148 square feet. The identified owner is Acuity Capital Partners. There are no active new building construction projects on this tax block.

The majority, or 83 percent of the 137,148 square feet of built space are residential elevator buildings, with industrial buildings next occupying 17 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 21 Delavan Street that occurred over the past 24 months.

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