KKR, Dalan pay $190M to Brookfield for 365-unit rental tower in Fort Greene

KKR & Co. and Dalan Management through the entity Kre Dekalb Owner LLC paid $190 million to Brookfield Properties through the entity Fc 80 Dekalb Associates, LLC for 365-unit residential elevator building (D7) at 80 Dekalb Avenue in Fort Greene, Brooklyn.
The deal closed on July 8, 2022 and was recorded on July 19, 2022. The property has 335,187 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $566 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.)
BLDUP first reported in the sale of the property. The deal was brokered by JLL, according to the report.

The purchased was financed by a $131.5 million loan from State Street Bank and Trust.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Linda Early, head officer and Arcenio Cuevas, site manager. The business entity is Fc 80 Dekalb Associates Llc. The 335,187-square-foot property generated revenue of $15.4 million or $46 per square foot, according to the most recent income and expense figures.

The property

The 80 Dekalb Avenue parcel has frontage of 203 feet and is 83 feet deep with a total lot size of 13,626 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2012 and expires in 2037.0. The city-designated market value for the property in 2022 is $71.2 million.The most recent loan totaled $275 million and was provided by Madison Realty Capital on September 3, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received seven DOB violations and $600 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 802,327 square feet. The largest is a new building project for a 52-unit, 764,352-square-foot R-2 building developed by Simon Dushinsky with plans filed April 29, 2021 and it has not been permitted yet. The second largest is a new building project for a 37,975-square-foot office (B) building developed by Simon Dushinsky with plans filed June 14, 2017 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 335,187 square feet of the 335,187 square feet. The largest owner is Brookfield Properties, followed by Rabsky Group and then Spencer Equity Group.
There are two active new building construction projects totaling 802,327 square feet. The largest is a 52-unit, 764,352-square-foot R-2 building developed by Simon Dushinsky with plans filed April 29, 2021 and it has not been permitted yet.The second largest is a 37,975-square-foot B building developed by Simon Dushinsky with plans filed June 14, 2017 and permitted November 13, 2020.

The majority, or 100 percent of the 335,187 square feet of built space are elevator buildings, with development buildings next occupying 0 percent of the space.

Surrounding

Within a 400-foot radius of 80 Dekalb Avenue, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, three were in new building development. There were three new building permit applications. The most recent of these three items was a filing on February 4, 2022 for a 288,849-square-foot R-2 building with 275 residential units at 75 Dekalb Avenue.
Of those six items, three were loans above $5 million totaling $308.2 million. The most recent of the three was Rockrose Development which borrowed $240 million from Wells Fargo secured by the 61,950-square-foot, four-unit industrial (G1) on 98 Dekalb Avenue on May 18, 2022.

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