Prologis pays $51M to National Grid for 16-acre dev site in Coney Island

Prologis through the entity 2731 W 12th Street LLC paid $51 million to National Grid through the entity The Brooklyn Union Gas Company for the 16-acre M-zoned development lot at 2731 West 12th Street in Coney Island, Brooklyn.
The deal closed on January 30, 2024 and was recorded on February 2, 2024. The property has zero square feet of built space and 1,422,260 square feet of additional air rights for a total buildable of 1,422,260 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $35 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 National Grid was Steven Doben. The signatory for Prologis was Megan Robert. The contract date was December 22, 2022.

Purchase and sale agreement LINK.

The property was originally marketed by JLL’s Stephen Palmese, Crain’s reported in 2020. Ultimately, the deal was brokered by Hall Oster and Ethan Stanton of JLL.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Prologis had purchased any other properties and has no record it sold any properties over the past 24 months, although it was very active in 2021 through January 2022.
The seller National Grid had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 782 feet and is 474 feet deep with a total lot size of 711,130 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing.

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 block

On this tax block, PincusCo has identified the owners of 14 of the 53 commercial properties representing 214,988 square feet of the 327,127 square feet. The largest owner is Turnbridge Equities, followed by Cubesmart and then Consolidated Edison.
On the tax block, there were three new building construction projects totaling 72,113 square feet. The largest is a 68,910 square-foot business (B) building submitted by Jim Eagleton with plans filed May 23, 2017 and permitted January 21, 2020. The second largest is a 2,016 square-foot business (B) building submitted by Monachan Mathai with plans filed April 21, 2021 and it has not been permitted yet.

The majority, or 89 percent of the 327,127 square feet of built space are industrial buildings, with office buildings next occupying 7 percent of the space.

The buyer

The PincusCo database currently indicates that Prologis owned at least 18 commercial properties in New York City with 347,800 square feet and a city-determined market value of $46.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 347,800 square feet of built space are industrial properties, with E1 properties next occupying 37 percent of the space. The bulk, or 62 percent of the built space, is in Brooklyn, with Bronx next at 19 percent of the space.

Direct link to Acris document. link