Landau Properties signs contract to buy 136-unit dev site from Midtown Equities in Brooklyn Heights
Landau Properties through the entity LDC Montague LLC signed a contract to pay an undisclosed amount to Midtown Equities through the entity 205 Montague LLC for the development site, now an office building (O5), at 205 Montague Street in Brooklyn Heights, Brooklyn.
On the lot, there is one active new building construction project for a 136-unit, 411,847 square-foot R-2 building, as The Real Deal reported. The project was submitted by Jonathan Landau with plans filed March 18, 2024 and it has not been permitted yet.
The deal closed on April 5, 2024 and was recorded on April 8, 2024.
The signatory for Midtown Equities was Jack Cayre. The signatory for Landau Properties was Jonathan Landau. The contract date was April 5, 2024.
Landau Properties plans to develop residential and commercial properties in four cities, according to its website: New York City, Miami, Boston and Dallas. The transaction is set to close on August 27, 2024. The price was not disclosed.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Landau Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Midtown Equities had not purchased any other properties and had not sold any properties over the same time period. The 76,041-square-foot property generated revenue of $4.5 million or $59 per square foot, according to the most recent income and expense figures.
The property
The office building in Brooklyn Heights has 76,041 square feet of built space and 116,456 square feet of additional air rights for a total buildable of 192,490 square feet according to a PincusCo analysis of city data. The parcel has frontage of 238 feet and is 161 feet deep with a total lot size of 19,249 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 city-designated market value for the property in 2022 is $24.1 million. The most recent loan totaled $45 million and was provided by Signature Bank on August 3, 2022.
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 $1,705 in OATH penalties in the last year.
The neighborhood
In Brooklyn Heights, The bulk, or 26 percent of the 12 million square feet of commercial built space are office buildings, with elevator buildings next occupying 23 percent of the space. In sales, Brooklyn Heights has 2.4 times the average sales volume among other neighborhoods with $682.2 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods.It had 676,888 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the four commercial properties representing 330,866 square feet of the 330,866 square feet. The largest owner is Sol Goldman Investments, followed by Midtown Equities and then Jonathan Rose Companies.
On the tax block, there were two new building construction projects totaling 546,641 square feet. The largest is a 136-unit, 411,847 square-foot residential (R-2) building submitted by Jonathan Landau with plans filed March 18, 2024 and it has not been permitted yet. The second largest is a 90-unit, 134,794 square-foot residential (R-2) building submitted by Jonathan Rose Companies and filed by Michael Daly with plans filed July 1, 2015 and permitted April 19, 2017.
The majority, or 50 percent of the 330,866 square feet of built space are elevator buildings, with office buildings next occupying 41 percent of the space.
The seller
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