Extell, Feil pays $7.7M to JJ Operating for air rights from landmarked building in Downtown Brooklyn

Extell Development and Feil Organization through the entity Feil Fulton Owner LLC paid $7.7 million through an air rights purchase, to JJ Operating through the entity 374 Fulton Associates LLC for 30,735 square feet of transferable development rights from the landmarked JJ Operating mixed-use building (K4) at 372-374 Fulton Street in Downtown Brooklyn, Brooklyn. The air rights priced at $250 per square foot will be utilized to develop Extell and Feil’s 363-unit project at 356 Fulton Street that is next door.
The deal closed on July 9, 2025 and was recorded on August 1, 2025.
The signatory for JJ Operating was Samuel J. Jemal . The signatory for Extell Development and Feil Organization was Jeffrey Feil . This is the sale of 30,735 square feet of development right, for $250 per square foot. The total buildable on the owned properties and with the air rights is 476,607, but that total does not include any Bonus Development Rights that may be available.

The city designated 372-374 Fulton Street an interior and exterior city landmark in 1975.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Extell Development purchased 10 properties in six transactions for a total of $537.8 million and sold seven properties in seven transactions for a total of $396.5 million over the past 24 months.
The seller JJ Operating had not purchased any other properties and had not sold any properties over the same time period. Out of the eight properties, one with a total of 74,944 square feet of built space generated revenue of $656,818 per year.

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 four DOB violations, $15,900 in ECB penalties, and $35,575 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project, B00600120, for a 363-unit, 443,418 square-foot R-2 building. The project was submitted by Feil Organization and filed by Jeff Mongno with plans filed November 17, 2021 and permitted April 21, 2022.

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 $305.2 million in sales volume in the last two years and is the 22nd 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.

The block

On the tax block of 380 Fulton Street, PincusCo has identified the owners of nine of the 13 commercial properties representing 405,941 square feet of the 420,032 square feet. The largest owner is Clipper Equity, followed by Extell Development and then Nyc Department Of Education.
On the tax block, there was one new building construction project filed totaling 443,418 square feet. It is a 363-unit, 443,418 square-foot residential (R-2) building submitted by Feil Organization and filed by Jeff Mongno with plans filed November 17, 2021 and permitted April 21, 2022.

The majority, or 70 percent of the 420,032 square feet of built space are office buildings, with mixed-use buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Jj Operating owned at least four commercial properties with 196 residential units in New York City with 380,789 square feet and a city-determined market value of $85.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 380,789 square feet of built space are office properties, with retail properties next occupying 10 percent of the space. The bulk, or 90 percent of the built space, is in Brooklyn, with Manhattan next at 10 percent of the space.

The buyer

The PincusCo database currently indicates that Extell Development owned at least 69 commercial properties with 691 residential units in New York City with 2,890,241 square feet and a city-determined market value of $833.2 million. (Market value is typically about 50% of actual value.) The portfolio has $7.3 billion in debt, with top three lenders as Guggenheim Partners, Blackstone Group, and JVP Management respectively. Within the portfolio, the bulk, or 37 percent of the 2,890,241 square feet of built space are specialty properties, with elevator properties next occupying 20 percent of the space. The bulk, or 96 percent of the built space, is in Manhattan, with Brooklyn next at 4 percent of the space.
The PincusCo database currently indicates that Feil Organization owned at least 37 commercial properties with 1,084 residential units in New York City with 7,172,868 square feet and a city-determined market value of $1.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $677.9 million in debt, with top three lenders as Morgan Stanley, Deutsche Bank, and M&T Bank respectively. Within the portfolio, the bulk, or 56 percent of the 7,172,868 square feet of built space are office properties, with elevator properties next occupying 15 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Queens next at 21 percent of the space.

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