Demo company Titan pays $24M for industrial in Greenpoint

Titan Industrial Services, a property demolition company based in Glendale, through the entity 121 Hausman Street LLC paid $24 million to Yitzchok Schwartz and Yidel Hirsch through the entity Housman Holdings LLC for the industrial building at 121 Hausman Street in Greenpoint, Brooklyn.
The deal closed on March 31, 2022 and was recorded on April 14, 2022. The property has 70,828 square feet of built space and 62,631 square feet of additional air rights for a total buildable of 133,258 square feet according to PincusCo analysis of city data. The sale price per built square foot is $338 and the price per buildable square foot is $180 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 February 25, 2016, for $16.1 million. The signatory for Yitzchok Schwartz and Yidel Hirsch was Yitzchok Schwartz and Yidel Hirsch. The signatory for Titan was Anna Casalino.

Prior sales and revenue

The seller Yitzchok Schwartz purchased two properties in one transactions for a total of $3.7 million and had not sold any properties over the same time period. The 70,828-square-foot property generated revenue of $1.1 million or $16 per square foot, according to the most recent income and expense figures.

The property

The 121 Hausman Street parcel has frontage of 200 feet and is 323 feet deep with a total lot size of 66,629 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $4.1 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $10,300 in OATH penalties 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 Greenpoint, the bulk, or 23 percent of the 29.6 million square feet of commercial built space are residential walkup buildings, with industrial buildings next occupying 21 percent of the space. In sales, Greenpoint has 1.6 times the average sales volume among other neighborhoods with $450.6 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Greenpoint has 3.7 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

All properties are industrial.

The seller

The PincusCo database currently indicates that Yitzchok Schwartz owned at least five commercial properties with 256,893 square feet and a city-determined market value of $32.8 million. (Market value is typically about 50% of actual value.) The portfolio has $45.3 million in debt, borrowed from Greystone & Co. and Investors Bank. Within the portfolio, all identified are residential elevator properties. They are all located in Brooklyn.
The PincusCo database currently indicates that Yidel Hirsch owned at least two commercial properties with 47,545 square feet and a city-determined market value of $8.7 million. (Market value is typically about 50% of actual value.) The portfolio has $69.2 million in debt, borrowed from Popular Bank and Kearny Bank. Within the portfolio, the bulk, or 61 percent of the 47,545 square feet of built space are residential elevator properties, with industrial properties next occupying 39 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 121 Hausman Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
One of those two items was a sale which Apex Investments bought the 23,000-square-foot, one-unit industrial (E9) on 83 Apollo Street for $10.6 million from Jerry Lebedowicz on December 24, 2020.
One of those two items was a loan which Apex Investments borrowed $17.5 million from Fundamental Partners IV secured by the 23,000-square-foot, one-unit industrial (E9) on 83 Apollo Street on June 16, 2021.

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