Madison Capital clearing Red Hook dev site acquired for $45M last year

The city’s Department of Buildings reported that Madison Capital had demolished four buildings on two tax lots in Red Hook, Brooklyn, clearing the way for a future development. Madison Capital acquired the two sites for $45 million last year from Jack Guttman. No new building plans have been filed on the parcels, according to a PincusCo review of buildings filings.

Madison Capital filed to demolish five buildings in September 2021, and four of them are now signed off as demolished. One building, with an address of 721 Clinton Street, does not yet have that sign off.

The 688 Court Street parcel has frontage of 450 feet and is 515 feet deep with a total lot size of 138,930 square feet and had at least four buildings, according to the filing. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $7.2 million.The most recent loan totaled $24.8 million and was provided by Signature Bank in May 2021.

The parcel has total buildable of 277,860 square feet according to PincusCo analysis of city data.

The 702 Court Street parcel, which is surrounded on three sides by the 688 Court Street parcel, has frontage of 125 feet and is 150 feet deep with a total lot size of 18,750 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.3 million.

On this tax block, PincusCo has identified the owners of five of the six commercial properties representing 89,163 square feet of the 96,222 square feet. The largest owner is Madison Capital, followed by RXR Realty and then Forkosh Development Group. there are no active new building construction projects on this tax block.

The PincusCo database, which is incomplete, currently indicates that Madison Capital owned at least six commercial properties in New York City with 1,332,362 square feet and a city-determined market value of $216.6 million. (Market value is typically about 50% of actual value.) The portfolio has $385.4 million in debt, with top three lenders as JPMorgan Chase, Blackstone Mortgage Trust, and Societe Generale respectively. Within the portfolio, the bulk, or 89 percent of the 1,332,362 square feet of built space are industrial properties, with office properties next occupying 9 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Manhattan next at 11 percent of the space.

Within a 400-foot radius of 688 Court Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. Of those four items, one was in new building development. It was a new building permit application filed on April 21, 2022 for a 255,370-square-foot S-1 building at 683 Court Street. One of those four items was a sale which RXR Realty bought the 10,357-square-foot, one-unit industrial (G1) on 726 Court Street and three other properties for $19.5 million from Buckeye Partners on December 29, 2021. Of those four items, two were loans above $5 million totaling $79.8 million. The most recent of the two was Forkosh Development Group which borrowed $6 million from Bethpage Federal Credit Union secured by the 16,845-square-foot, one-unit industrial (F5) on 757 Clinton Street on February 8, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.