O’Connell Organization pays $8M to Highline Stages for industrial in Red Hook
238 Conover Street (Credit - Google)
The family office O’Connell Organization through the entity 238 Conover Street, LLC paid $8 million to Highline Stages through the entity Buttermilk Warehouse, LLC for the industrial building (E9) at 238 Conover Street in Red Hook, Brooklyn.
The deal closed on September 15, 2022 and was recorded on September 21, 2022. The property has 17,900 square feet of built space and 7,680 square feet of additional air rights for a total buildable of 25,600 square feet according to PincusCo analysis of city data. The sale price per built square foot is $446 and the price per buildable square foot is $312 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 seller bought the property on November 20, 2014, for $4.3 million. The signatory for Highline Stages was Gary Kline. The signatory for O’Connell Organization was Gregory T. O’Connell.
Prior sales and revenue
Prior to this transaction, Pincusco has no record that the buyer O’Connell Organization had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Highline Stages had not purchased any other properties and had not sold any properties over the same time period. The 17,900-square-foot property generated revenue of $286,637 or $16 per square foot, according to the most recent income and expense figures.
The property
The 238 Conover Street parcel has frontage of 160 feet and is 80 feet deep with a total lot size of 12,800 square feet. The zoning is M2-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.2 million.
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Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 $5 million on this tax lot.
The neighborhood
In Red Hook, the bulk, or 49 percent of the 9 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 28 percent of the space. In sales, Red Hook has 2.3 times the average sales volume among other neighborhoods with $794.4 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Red Hook has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 961,526 square feet of commercial and multi-family construction under development in the last two years, which represents 11 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
There are no active new building construction projects on this tax block.
The majority, or 82 percent of the 433,265 square feet of built space are industrial buildings, with specialty buildings next occupying 18 percent of the space.
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