Michael Petri pays $2.6M for industrial in Gowanus

Michael Petri through the entity MCJP Holding LLC paid $2.6 million to Anne Holmquist through the entity 355 Butler Associates, LLC for the industrial building (F5) at 355 Butler Street in Gowanus, Brooklyn.
The deal closed on June 29, 2023 and was recorded on July 14, 2023. The property has 5,857 square feet of built space and 2,399 square feet of additional air rights for a total buildable of 8,274 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $452 and the price per buildable square foot is $320 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 Anne Holmquist was Anne Holmquist. The signatory for Michael Petri was Michael Petri.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Michael Petri had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Anne Holmquist had not purchased any other properties and had not sold any properties over the same time period. The 5,857-square-foot property generated revenue of $117,617 or $20 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Gowanus has 5,857 square feet of built space and 2,399 square feet of additional air rights for a total buildable of 8,274 square feet according to a PincusCo analysis of city data. The parcel has frontage of 57 feet and is 100 feet deep with a total lot size of 4,137 square feet. The lot is irregular. The zoning is M1-4 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $655,000.

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 not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 1.7 times the average sales volume among other neighborhoods with $595.6 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Gowanus is the 6th most active neighborhood among other neighborhoods. It had 4.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 50 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 15 commercial properties representing 216,974 square feet of the 229,449 square feet. The largest owner is Watermark Capital Group, followed by Storage Deluxe and then Related Companies.
On the tax block, there were four new building construction projects totaling 314,348 square feet. The largest is a 176-unit, 128,744 square-foot hotel/dormitory/shelter (R-1) building submitted by Miriam Chan and filed by Miriam Chan with plans filed November 20, 2014 and it has not been permitted yet. The second largest is a 92-unit, 68,808 square-foot residential (R-2) building submitted by 159 Third Residence Llc and filed by 159 Third Residence Llc with plans filed February 11, 2022 and permitted May 4, 2022.

The majority, or 59 percent of the 229,449 square feet of built space are industrial buildings, with elevator buildings next occupying 27 percent of the space.

Direct link to Acris document. link