Jack Guttman’s Pearl Realty pays $29.5M to Samson Mgmt for office in Gowanus, was $75M in 2015

Jack Guttman’s Pearl Realty Management through the entity 92 Third St Gowanus LLC paid $29.5 million to Samson Management through the entity 92 Third Street LLC for the office building (O5) at 92 Third Street in Gowanus, Brooklyn. The expected use is cash flowing.
The deal closed on September 30, 2024 and was recorded on October 8, 2024. The property has 72,700 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $405 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 seller bought the property in 2015 for $75 million. The signatory for Samson Management was Brian McCarthy. The signatory for Pearl Realty Management was Jack Guttman. The contract date was August 9, 2024. Samson Management paid LIVWRK and First Market Capital $75 million for the rehabilitated office building in 2015, a year after those sellers had paid $20.34 million in January 2014.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Pearl Realty Management purchased one property in one transaction for a total of $11 million and sold 10 properties in five transactions for a total of $238.6 million over the past 24 months.
The seller Samson Management had not purchased any other properties and sold one property in one transaction for a total of $31 million over the same time period.

The property

The office building in Gowanus has 72,700 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 260 feet and is 190 feet deep with a total lot size of 33,521 square feet. The lot is irregular. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $19 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 received $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 22, 2015. 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 $607 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Gowanus has 2.7 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 13 commercial properties representing 16,500 square feet of the 124,118 square feet. The two identified owners are SBH and Stephen Adler.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 124,118 square feet of built space are office buildings, with industrial buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Samson Management owned at least 10 commercial properties with 773 residential units in New York City with 730,967 square feet and a city-determined market value of $94.4 million. (Market value is typically about 50% of actual value.) The portfolio has $148.6 million in debt, with top three lenders as Capital One, Societe Generale, and New York Community Bank respectively. Within the portfolio, all identified are elevator properties. The bulk, or 66 percent of the built space, is in Queens, with Manhattan next at 24 percent of the space.

The buyer

The PincusCo database currently indicates that Pearl Realty Management owned at least 63 commercial properties with eight residential units in New York City with 1,132,280 square feet and a city-determined market value of $155.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 62 percent of the 1,132,280 square feet of built space are industrial properties, with office properties next occupying 20 percent of the space. The bulk, or 70 percent of the built space, is in Brooklyn, with Bronx next at 18 percent of the space.

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