Montgomery Street Partners pays $46.5M for Gowanus dev site, leases it to Watermark

Montgomery Street Partners through the entity Degraw Holdings LLC paid $46.5 million to Marino Mazzei through the entity 242 Nevins, Inc. for a development site with the approximate address of 563 Sackett Street in Gowanus, Brooklyn. Simultaneously, Montgomery Street Partners as landlord signed a ground lease with Watermark Capital Group as tenant, who will be the developer of the parcel. The expected use is ground up development.

The parcel is adjacent to Domain Companies 540 Degraw Street, also known as 545 Sackett Street.
The deals closed on October 31, 2025 and were recorded on November 12, 2025. The two properties have 10,750 square feet of built space and 231,830 square feet of additional air rights for a total buildable of 242,500 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $191 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 Marino Mazzei was Nunziata Mazzei. The signatory for Montgomery Street Partners was Murray McCabe . The contract date was July 8, 2024. Montgomery Street Partners bought it through its affiliate, Ground Lease REIT, also known as GLR Capital Investments.

In the lease portion of the transaction, Watermark Capital Group through the entity Five Sixty Three S LLC signed a 99-year lease as tenant, valued at $46.5 million, with Montgomery Street Partners through the entity Degraw Holdings LLC.

The signatory for Montgomery Street Partners was Murray McCabe . The signatory for Watermark Capital Group was Meir D. Tabak .

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Montgomery Street Partners had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Marino Mazzei had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Gowanus has 10,750 square feet of built space and 231,830 square feet of additional air rights for a total buildable of 242,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 350 feet and is 100 feet deep with a total lot size of 48,500 square feet. The lot is irregular. The zoning is M1-4/R7X which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $2,380 in OATH penalties 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 2.3 times the average sales volume among other neighborhoods with $667.4 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Gowanus has 1.3 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of N/A Degraw Street, PincusCo has identified the owners of four of the six commercial properties representing 60,300 square feet of the 71,964 square feet. The two identified owners are Vorea Group and Hershy Silberstein.
On the tax block, there were five new building construction projects totaling 1,067,828 square feet. The largest is a 291-unit, 258,599 square-foot residential (R-2) building submitted by Marino Mazzei|Bonafide Realty and filed by Marino Mazzei with plans filed February 4, 2022 and permitted May 31, 2022. The second largest is a 291-unit, 258,599 square-foot residential (R-2) building submitted by Marino Mazzei and filed by Marino Mazzei with plans filed February 4, 2022 and permitted May 31, 2022.

The majority, or 84 percent of the 71,964 square feet of built space are industrial buildings, with retail buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Marino Mazzei owned at least eight commercial properties with eight residential units in New York City with 36,542 square feet and a city-determined market value of $6.5 million. (Market value is typically about 50% of actual value.) The portfolio has $3 million in debt, borrowed from Bonafide Realty. Within the portfolio, the bulk, or 49 percent of the 36,542 square feet of built space are office properties, with walkup properties next occupying 19 percent of the space. They are all located in Brooklyn.

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