Goose Property Management pays $22M to Elo Organization for development in Gowanus

Yitzchok Katz’s Goose Property Management through the entity 172 Third Ave LLC paid $22 million to Jack Elo’s Elo Organization through the entity Fortune Jd LLC for the 12,662-square-foot vacant lot (V1) at 172 3rd Avenue in Gowanus, Brooklyn. The expected use is ground up development.

Yitzchok Katz’s Goose Property Management is also in contract to buy 246 Butler Street, just to the west.
The deal closed on November 6, 2024 and was recorded on November 14, 2024.
The seller bought the property on October 1, 2009, for $7.8 million. The signatory for Elo Organization was Ron Lazar, an attorney. The signatory for Goose Property Management was Yitzchok Katz. The contract date was March 23, 2023. Katz signed a contract which PincusCo reported on earlier this year. The Commercial Observer reported on the sale last week.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Goose Property Management purchased properties in one transaction for a total of $39.7 million and has no record it sold any properties over the past 24 months.
The seller Elo Organization had not purchased or sold any other properties over the same time period.

The property

The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 12,662 square feet. The zoning is M1-4/R7X which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.4 million. The most recent loan totaled $21.5 million and was provided by Hirshmark Capital on November 6, 2023.

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 not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project, 321193775, for a 19,775 square-foot S-2 building. The project was submitted by Jack Elo with plans filed June 20, 2017 and it has not been permitted yet.

The neighborhood

In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.3 times the average sales volume among other neighborhoods with $586.6 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Gowanus has 2.8 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Brooklyn. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 33 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the eight commercial properties representing 69,334 square feet of the 96,884 square feet. The two identified owners are Goose Property Management and Canyon Partners.
On the tax block, there were two new building construction projects totaling 243,661 square feet. The largest is a 261-unit, 223,886 square-foot residential (R-2) building submitted by Tavros Capital Partners and filed by Dov Barnett with plans filed November 16, 2021 and permitted April 29, 2022. The second largest is a 19,775 square-foot storage (S-2) building submitted by Jack Elo with plans filed June 20, 2017 and it has not been permitted yet.

The majority, or 51 percent of the 96,884 square feet of built space are office buildings, with industrial buildings next occupying 49 percent of the space.

The seller

The PincusCo database currently indicates that Elo Organization owned at least six commercial properties in New York City with 201,829 square feet and a city-determined market value of $53.8 million. (Market value is typically about 50% of actual value.) The portfolio has $25.1 million in debt, borrowed from JPMorgan Chase and Dime Community Bank. Within the portfolio, all identified are office properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Goose Property Management owned at least seven commercial properties with 322 residential units in New York City with 126,627 square feet and a city-determined market value of $18.8 million. (Market value is typically about 50% of actual value.) The portfolio has $147.8 million in debt, borrowed from H.I.G. Capital and Affinius Capital. Within the portfolio, the bulk, or 53 percent of the 126,627 square feet of built space are industrial properties, with office properties next occupying 41 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link