Green Street Group pays $14M to Marshall Kesten for 67-unit development in Greenpoint

Green Street Group through the entity 170 Freeman LLC paid $14 million to Marshall Kesten through the entity BK Corners LLC for the development parcel (V1) at 1036 Manhattan Avenue in Greenpoint, Brooklyn.

On the lot, there is one active new building construction project for a 67-unit, 44,637 square-foot R-2 building. The project was submitted by Jenna Goldman with plans filed September 24, 2020 and permitted May 18, 2022.
The deal closed on August 2, 2023 and was recorded on August 10, 2023. The property has zero square feet of built space and 39,996 square feet of additional air rights for a total buildable of 39,996 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $350 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 signatory for Marshall Kesten was Ryan O. Miller. The signatory for Green Street Group was Joshua Greenberg. The contract date was May 19, 2023. Green Street Group has a rendering of the project on its website.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Green Street Group purchased two properties in two transactions for a total of $5 million and sold three properties in one transactions for a total of $24.7 million over the past 24 months.
The seller Marshall Kesten purchased one property in one transaction for a total of $1.5 million and sold one property in one transaction for a total of $2.6 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 not received any significant violations in the last year.

The neighborhood

In Greenpoint, The bulk, or 29 percent of the 23.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 25 percent of the space. In sales, Greenpoint has 2 times the average sales volume among other neighborhoods with $717.7 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Greenpoint has 2.1 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 27 of the 31 commercial properties representing 159,338 square feet of the 171,555 square feet. The largest owner is Zdzislaw Zylka, followed by Yoel Rubin and then Carlo Casalino.
On the tax block, there were two new building construction projects totaling 44,637 square feet. The largest is a 67-unit, 44,637 square-foot residential (R-2) building submitted by Jenna Goldman with plans filed September 24, 2020 and permitted May 18, 2022. The second largest is a 35-unit residential (R-2) building submitted by Brend Development Corporation and filed by Witold Brend with plans filed September 13, 2021 and permitted March 14, 2022.

The majority, or 81 percent of the 171,555 square feet of built space are walkup buildings, with elevator buildings next occupying 13 percent of the space.

The seller

The PincusCo database currently indicates that Marshall Kesten owned at least two commercial properties in New York City with 5,125 square feet and a city-determined market value of $532,000. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 5,125 square feet of built space are industrial properties, with V1 properties next occupying 0 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Green Street Group owned at least five commercial properties with 28 residential units in New York City with 6,000 square feet and a city-determined market value of $2 million. (Market value is typically about 50% of actual value.) The portfolio has $45.3 million in debt, with top three lenders as Bankwell Bank, Bank Leumi, and ConnectOne Bank respectively. Within the portfolio, the bulk, or 50 percent of the 6,000 square feet of built space are S2 properties, with mixed-use properties next occupying 50 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link