Monadnock pays $26.7M to Brookdale Hospital for dev site in East Flatbush

Monadnock Development through the entity VB Utica Crescent Owner LLC in partnership with VB Ccpopd Housing Development Fund Corporation paid $26.7 million to Brookdale Hospital Medical Center for the development site (G7) at 832 Rutland Road in East Flatbush, Brooklyn. Brookdale is part of the One Brooklyn Health, which also includes Kingsbrook Jewish Medical Center. Monadnock and CB-Emmanuel Realty partnered to development the site, called Utica Crescent.
On the lot, there is one active new building construction project for a 323-unit, 338,611 square-foot residential (R-2) building. The project was submitted by Brookdale Hospital Medical Center and filed by Tony Renteria with plans filed January 5, 2022 and it has not been permitted yet.

The deal closed on December 13, 2023 and was recorded on December 15, 2023.
The signatory for Brookdale Hospital Medical Center was LaRay Brown. The signatory for Monadnock Development was Nicholas Lembo. The contract date was November 30, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Monadnock Development purchased one property in one transaction for a total of $5.7 million and has no record it sold any properties over the past 24 months.
The seller Brookdale Hospital Medical Center had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 414 feet and is 200 feet deep with a total lot size of 62,820 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled $118.8 million and was provided by NYS Dormitory Authority on December 30, 2020.

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 $6,250 in ECB penalties in the last year.

The neighborhood

In East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has near average sales volume among other neighborhoods with $313.8 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, East Flatbush has 2 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing zero square feet of the 11,360 square feet. The identified owner is Brookdale Hospital Medical Center.
On the tax block, there was one new building construction project filed totaling 338,611 square feet. It is a 321-unit, 338,611 square-foot residential (R-2) building submitted by Brookdale Hospital Medical Center and filed by Tony Renteria with plans filed January 5, 2022 and it has not been permitted yet.

The majority, or 97 percent of the 11,360 square feet of built space are retail buildings, with industrial buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Brookdale Hospital Medical Center owned at least 39 commercial properties with 11 residential units in New York City with 2,171,670 square feet and a city-determined market value of $433.4 million. (Market value is typically about 50% of actual value.) The portfolio has $205 million in debt, borrowed from NYS Dormitory Authority. Within the portfolio, the bulk, or 85 percent of the 2,171,670 square feet of built space are specialty properties, with industrial properties next occupying 14 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Monadnock Development owned at least 73 commercial properties with 2,933 residential units in New York City with 2,119,587 square feet and a city-determined market value of $273.7 million. (Market value is typically about 50% of actual value.) The portfolio has $646.2 million in debt, with top three lenders as New York City Housing Authority, NYC Housing Development Corporation, and Wells Fargo respectively. Within the portfolio, the bulk, or 65 percent of the 2,119,587 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Bronx next at 17 percent of the space.

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