Quinlan pays $24M for Gowanus dev site, gets $88.5M construction loan for 197-unit project

Quinlan Development Group through the entity 380 4th Avenue Owner, LLC paid $24 million to Susan Rattner through the entity 374 Fourth Avenue Realty, LLC for the development site (G9) at 380 4th Avenue in Gowanus, Brooklyn.
On the lot, there is one active new building construction project for a 197-unit, 169,726 square-foot residential (R-2) building. The project was submitted by Kyle Cohen with plans filed October 15, 2021 and it has not been permitted yet.
To finance the development, Quinlan Development Group through the entity 380 4th Avenue Owner, LLC as borrower signed a new construction loan with lender First-Citizens Bank & Trust Company valued at $88.5 million.
The deal closed on October 6, 2022 and was recorded on October 18, 2022.
The seller bought the property on January 3, 2012, for $7 million. The signatory for Susan Rattner was Susan Rattner. The signatory for Quinlan Development Group was Timothy Quinlan.

Prior sales and revenue

Prior to this transaction, PincusCo has no records that the buyer Quinlan Development Group purchased any others properties over the past 24 months.
The seller Susan Rattner had not purchased any other properties and sold one properties in one transactions for a total of 0.0 over the same time period.

The property

The 376 4th Avenue parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet.

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 received $1,030 in ECB penalties and $1,030 in OATH penalties in the last year.

The neighborhood

In Gowanus, the bulk, or 47 percent of the 9.3 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 1.4 times the average sales volume among other neighborhoods with $471.2 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Gowanus is the 7th most active neighborhood among other neighborhoods. It had 4.7 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.

The block

On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 66,294 square feet of the 579,989 square feet. The largest owner is Mukeshkumar Patel, followed by Joseph Zafarani and then Quinlan Development Group.
On the tax block, there were two new building construction projects totaling 181,156 square feet. The largest is a 197-unit, 169,726-square-foot R-2 building developed by Kyle Cohen with plans filed October 15, 2021 and it has not been permitted yet.The second largest is a N/A-unit, 11,430-square-foot B building developed by Joseph Zafarani with plans filed January 14, 2011 and permitted October 26, 2012.

The majority, or 56 percent of the 579,989 square feet of built space are industrial buildings, with office buildings next occupying 15 percent of the space.

The buyer

The PincusCo database currently indicates that Quinlan Development Group owned at least five commercial properties in New York City with 166,665 square feet and a city-determined market value of $52.9 million. (Market value is typically about 50% of actual value.) The portfolio has $45.7 million in debt, borrowed from CIT Bank and Sterling National Bank. Within the portfolio, the bulk, or 78 percent of the 166,665 square feet of built space are elevator properties, with industrial properties next occupying 11 percent of the space. The bulk, or 91 percent of the built space, is in Brooklyn, with Manhattan next at 9 percent of the space.

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