Jay Group, AB & Sons, pay $42.8M to Leser Group for dev site in Downtown Brooklyn

Jay Group and AB & Sons through the entity 101 Fleet Holding LLC paid $42.8 million to Leser Group through the entity Fleet Center, Inc. for the school building (W9) as a development site at 101 Fleet Place in Downtown Brooklyn, Brooklyn.
The deal closed on December 9, 2021 and was recorded on December 23, 2021.
In related transactions, Jay Group sold a 141-unit rental building in Harlem to HUBB NYC for $105 million and Jay Group along with AB & Sons obtained a $67.8 million construction loan for a 268-unit project in Hamilton Heights.

The Leser Group, for its part, signed a contract to sell the SUNY Downstate Medical Center for $153 million to an entity affiliated with Pearl Schwartz. Despite an affiliate of Pearl Schwartz filing for bankruptcy related to that purchase, a Leser Group filing with the Tel Aviv Stock Exchange indicates the sale will go ahead.

The Fleet Place property has 20,073 square feet of built space and 180,657 square feet of additional air rights for a total buildable of 200,730 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,129 and the price per buildable square foot is $212 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 Leser Group was Abraham Leser. The signatory for Jay Group was Isaac Chetrit.

There have been 2 demolition projects filed over the past five years.
Commercial Observer reported that the construction loan was arranged by Galaxy Capital and the property will be used for a multifamily project.

Within a 400-foot radius of 101 Fleet Place, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which Goris Grocers Flatbush Ave. Corp. bought one condo unit at the 243-unit mixed-use building (RM) on 150 Myrtle Avenue for $7.8 million from Benjamin Partners on May 7, 2021.
Of those three items, two were loans above $5 million totaling $207 million. The most recent of the two was Red Apple Group which borrowed $202 million from Bank of America secured by four condo units in the 16,239-square-foot, 441-unit mixed-use building (RM) on 86 Fleet Place on October 6, 2021.

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