Goose Property signs contract to add to Gowanus dev site

Yitzchok Katz’s Goose Property Management through the entity Goose Property Management LLC signed a contract to buy from Dominick Cappolla Jr. through the entity Domal Transportation Inc., the industrial building (E1) at 264 Butler Street in Gowanus, Brooklyn. The expected use is ground up development. The sale price was not disclosed in the memorandum of contract. Katz is in contract to buy the adjacent parcel 172 3rd Avenue in deal with a target closing date on or before October 15, 2024.
This new memorandum of contract was recorded on September 9, 2024. 264 Butler Street has 17,413 square feet of built space and 35,000 square feet of additional air rights for a total buildable of 52,500 square feet according to a PincusCo analysis of city data.
The signatory for Dominick Cappolla Jr. was Dominick Cappolla Jr. The signatory for Goose Property Management was Yitzchok Katz. The contract date was August 30, 2024. The closing is “initially scheduled to occur on the date which is one hundred eighty days following the date hereof,” which would be 180 days from August 30, or approximately February 26, 2025. The late Dominick Cappolla, who owned Domal Transportation, bought the property in January 1980.

Last year, Yitzchok Katz of Goose Property Management through the entity 172 Third Ave LLC signed a contract to buy from the Elo Organization through the entity Fortune JD LLC LLC the development site at 172 Third Avenue. The price was not disclosed in the memorandum of contract.
The memorandum was finalized on February 13, 2024 and was recorded on May 16, 2024. The property has total buildable of 147,500 square feet according to a PincusCo analysis of city data.

Prior sales and revenue

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

The property

The industrial building in Gowanus has 17,413 square feet of built space and 35,000 square feet of additional air rights for a total buildable of 52,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 100 feet deep with a total lot size of 17,500 square feet. The zoning is M1-4/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.3 million.

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

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 2.4 times the average sales volume among other neighborhoods with $633.3 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 4th 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.

The block

On this tax block, PincusCo has identified the owners of two of the eight commercial properties representing 51,921 square feet of the 96,884 square feet. The two identified owners are Goose Property Management and Charney Companies.
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 buyer

The PincusCo database currently indicates that Goose Property Management owned at least five commercial properties in New York City with 109,214 square feet and a city-determined market value of $16 million. (Market value is typically about 50% of actual value.) The portfolio has $99.8 million in debt, borrowed from H.I.G. Capital. Within the portfolio, the bulk, or 47 percent of the 109,214 square feet of built space are office properties, with industrial properties next occupying 45 percent of the space. They are all located in Brooklyn.

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