Douglaston Development pays $65M for 456-unit dev site in Bedford Stuyvesant

Douglaston Development through the entity 1065 Atlantic Avenue LLC paid $65 million to BEB Capital, an affiliate of Ofer Cohen, Tucker Reed, and Vivian Liao through the entity AI One Holdco LLC and others for the industrial building (F9) at 1045 Atlantic Avenue in Bedford Stuyvesant, Brooklyn.
At the same time, Ares Management made an equity investment and the developers obtained a $185 million construction loan from lenders led by Wells Fargo.
On the lot, there is one active new building construction project for a 456-unit, 397,252 square-foot R-2 building. The project was submitted by BEB Capital and filed by Craig Miller with plans filed October 19, 2021 and was permitted April 21, 2022.
The deal closed on May 26, 2023 and was recorded on June 6, 2023.
The signatory for BEB Capital, Ofer Cohen, Tucker Reed, and Vivian Liao was Lee J. Brodsky, Ofer Cohen, and Tucker Reed. The signatory for Douglaston Development was Jed Resnick. Ofer Cohen is CEO of the brokerage TerraCRG, and Tucker Reed leads the investment and advisory firm Totem Group. Ofer Cohen’s AI One Holdco LLC owned 6.4%, Tucker Reed and Vivian Liao’s AI Two Holdco LLC had 6.4%, and BEB Capital owned two entities, one with 10.36% and another with 76.85%. Totem and BEB Capital remain in the deal, according to reports.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Douglaston Development had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller BEB Capital purchased five properties in three transactions for a total of $123.3 million and had not sold any properties over the same time period. The 37,595-square-foot property generated revenue of $191,333 or $5 per square foot, according to the most recent income and expense figures.

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 $4,200 in OATH penalties in the last year.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 2.5 times the average sales volume among other neighborhoods with $875.9 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.3 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 6 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 seven of the 16 commercial properties representing 52,983 square feet of the 95,571 square feet. The largest owner is Steven Goldschmied, followed by Lloyd Roberts and then L+M Development Partners.
On the tax block, there was one new building construction project filed totaling 397,252 square feet. It is a 456-unit, 397,252 square-foot residential (R-2) building submitted by BEB Capital and filed by Craig Miller with plans filed October 19, 2021 and permitted April 21, 2022.

The majority, or 79 percent of the 95,571 square feet of built space are industrial buildings, with walkup buildings next occupying 19 percent of the space.

The seller

The PincusCo database currently indicates that BEB Capital owned at least 15 commercial properties with 197 residential units in New York City with 198,276 square feet and a city-determined market value of $45.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 198,276 square feet of built space are elevator properties, with F4 properties next occupying 6 percent of the space. The bulk, or 56 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

The buyer

The PincusCo database currently indicates that Douglaston Development owned at least six commercial properties with 2,188 residential units in New York City with 2,190,107 square feet and a city-determined market value of $551.4 million. (Market value is typically about 50% of actual value.) The portfolio has $82 million in debt, borrowed from NYS Housing Finance Agency and Metropolitan Commercial Bank. Within the portfolio, the bulk, or 99 percent of the 2,190,107 square feet of built space are elevator properties, with retail properties next occupying 1 percent of the space. The bulk, or 51 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

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