Jacob Kohn pays $15.1M for two industrial properties in Greenpoint

Jacob Kohn through the entity Clay Properties LLC paid $15.1 million to Andru Coren through the entity Adsaga LLC for the industrial building (F9) at 19 Clay Street in Greenpoint, Brooklyn and industrial building (F4) at 29 Clay Street in Greenpoint, Brooklyn.
The deal closed on June 16, 2022 and was recorded on July 6, 2022. The two properties have 19,796 square feet of built space and 27,821 square feet of additional air rights for a total buildable of 47,628 square feet according to PincusCo analysis of city data. The sale price per built square foot is $764 and the price per buildable square foot is $317 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.)

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 29 Clay Street.

The property

The 29 Clay Street parcel has frontage of 105 feet and is 75 feet deep with a total lot size of 9,270 square feet. The lot is irregular. The zoning is M1-2/R6 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $984,000.
The 19 Clay Street parcel has frontage of 105 feet and is 151 feet deep with a total lot size of 10,330 square feet. The lot is irregular. The zoning is M1-2/R6 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $944,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $3,250 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 60-unit, 47,757-square-foot R-2 building. The project was developed by Harold Block with plans filed October 15, 2015 and it has not been permitted yet.

The neighborhood

In Greenpoint, the bulk, or 28 percent of the 24.2 million square feet of commercial built space are residential walkup buildings, with industrial buildings next occupying 26 percent of the space. In sales, Greenpoint has 1.8 times the average sales volume among other neighborhoods with $594.5 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Greenpoint has 4.3 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 29 Clay Street, PincusCo has identified the owners of two of the 10 commercial properties representing 212,162 square feet of the 289,758 square feet. The two identified owners are Domain Companies and John Imperatore. There are four active new building construction projects totaling 98,974 square feet. The largest is a 60-unit, 47,757-square-foot R-2 building developed by Harold Block with plans filed October 15, 2015 and it has not been permitted yet. The second largest is a 27-unit, 22,974-square-foot R-2 building developed by Nicholas Manetta with plans filed December 20, 2018 and it has not been permitted yet.

The majority, or 86 percent of the 289,758 square feet of built space are residential elevator buildings, with industrial buildings next occupying 12 percent of the space.

Surrounding

Within a 400-foot radius of 29 Clay Street, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, four were in new building development. There were one new building permit application and three new building permits. The most recent of these four items was a permit on February 10, 2022 for a 240,163-square-foot R-2 building with 298 residential units at 87 Commercial Street.
Of those seven items, three were loans above $5 million totaling $249.3 million. The most recent of the three was Sela Group which borrowed $15 million from Madison Realty Capital secured by the 192,240-square-foot development site (V0) on Clay Street and four other properties on April 26, 2022.

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