DH Property, Bridge swap $13.5M parcel with importer to consolidate Sunset Park dev site

Partners DH Property Holdings, Bridge Industrial and Oak Capital Partners through their entity SIP Holdings Venture, sold a $13.5 million parcel at 73 20th Street in Sunset Park with a new building to a food importer, and paid that same importer $11.5 million for 60 20th Street, in a long-planned move to consolidate SIP’s large, multi-lot development site.

Referring to the illustration below, SIP Holdings bought Parcel 2 (Lot 1) for $11.5 million and sold Parcel 3 (Lot 11) with a new building on it for $13.2 million. SIP Holdings sold Parcel 4 to FedEx for $248 million.

In the first transaction, Russian food importer Krasnyi Oktyabr through the entity GG Master Realty LLC paid $13.5 million to DH Property Holdings, Bridge Industrial, and Oak Capital Partners through the entity SIP Holdings Venture, LLC for the industrial building (E9) at 73 20th Street in Sunset Park, Brooklyn.

The deal closed on April 10, 2024 and was recorded on April 25, 2024. The property has 36,779 square feet of built space and 16,552 square feet of additional air rights for a total buildable of 53,396 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $367 and the price per buildable square foot is $252 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 January 10, 2019, along with other tax parcels, for $40.8 million. The signatory for DH Property Holdings, Bridge Industrial, and Oak Capital Partners was Nick Siegel. The signatory for Krasnyi Oktyabr was Galina Gendelman. The contract date was May 31, 2021.

Krasnyi Oktyabr, according to city document, “is a leading importer and wholesale distributor of Russian and European food products. The Company, which was founded in Israel in 1990 and relocated to the United States in 1996, sells confectionery, candy, frozen cakes/cookies and other ethnic foods to grocery stores nationwide.”

DH Property Holdings bought a large development site from 601 West Companies in two transactions for a total of $255 million, composed of $40.8 million for lots 10, 11, 72 and for $214.2 million for lot 13. SIP Holdings sold a truncated tax lot 13 to FedEd for $248 million. In this new pair of transactions, SIP Holdings is swapping a parcel outside the future development site with one inside the development site previously owned by Semyon Katsura’s Krasnyi Oktyabr. SIP Holdings now plans to build a warehouse structure on the consolidated site.

In the second transaction, DH Property Holdings, Bridge Industrial, and Oak Capital Partners through the entity SIP Holdings Venture, LLC paid $11.5 million to Krasnyi Oktyabr through the entity Gg Master Realty LLC for the industrial building (E1) at 60 20th Street in Sunset Park, Brooklyn. The deal closed on April 10, 2024 and was recorded on April 25, 2024. The property has 15,130 square feet of built space and 15,188 square feet of additional air rights for a total buildable of 30,376 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $760 and the price per buildable square foot is $378 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 December 10, 2015, for $5 million. The signatory for Krasnyi Oktyabr was Galina Gendelman. The signatory for DH Property Holdings, Bridge Industrial, and Oak Capital Partners was Nick Siegel. The contract date was May 31, 2021.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Krasnyi Oktyabr had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller DH Property Holdings had not purchased any other properties and sold two properties in two transactions for a total of $580 million over the same time period.

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 one DOB violation and $11,000 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 36,381 square-foot S-1 building. The project was submitted by Bridge Industrial and filed by John Porcek with plans filed August 28, 2020 and permitted June 29, 2022.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.5 times the average sales volume among other neighborhoods with $429.8 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Greenwood Heights has 1.5 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 1.7 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. There was one 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 two of the 11 commercial properties representing 368,972 square feet of the 490,152 square feet. The two identified owners are Fedex and DH Property Holdings.
On the tax block, there were three new building construction projects totaling 1,250,431 square feet. The largest is a 1,038,742 square-foot storage (S-1) building submitted by Bridge Development Partners and filed by John Porcek with plans filed October 31, 2022 and it has not been permitted yet. The second largest is a 175,308 square-foot storage (S-1) building submitted by DH Property Holdings and filed by Dov Hertz with plans filed July 24, 2020 and permitted August 9, 2022.

The majority, or 68 percent of the 490,152 square feet of built space are office buildings, with industrial buildings next occupying 32 percent of the space.

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