RedHoek+Partners pays $12.5M for adjacent parcels in Gravesend, adds to potential dev site

RedHoek+Partners paid $12.5 million for two adjacent parcels in Gravesend, from two separate sellers in separate transactions. These acquisitions add to a potential development site, and follow on the March 2022 $8.5 million purchase of 346 Avenue U, which is adjacent. 

In the first, RedHoek+Partners through the entity DDG 362 Ave U Owner LLC paid $7.5 million to Arlene Sardell and Grace Sardell through the entity 368 Realty LLC for retail building (K2) at 356-368 Avenue U in Gravesend, Brooklyn.
The deal closed on September 29, 2022 and was recorded on October 3, 2022. The property has 7,600 square feet of built space and 10,381 square feet of additional air rights for a total buildable of 18,003 square feet according to PincusCo analysis of city data. The sale price per built square foot is $986 and the price per buildable square foot is $416 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 Arlene Sardell and Grace Sardell was Arlene Sardell and Grace Sardell. The signatory for RedHoek+Partners was Lee Cohen.

In the second, RedHoek+Partners through the entity DDG 362 Ave U Owner LLC paid $5 million to Joseph Minardi, Salvatore Minardi, and Grace Minardi through the entity Grace Mindardi, As Trustee for four-unit 1-4 family building (C3) at 2110 East 1st Street in Gravesend, Brooklyn.
The deal closed on September 29, 2022 and was recorded on October 3, 2022. The property has 4,108 square feet of built space and 7,880 square feet of additional air rights for a total buildable of 12,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,217 and the price per buildable square foot is $416 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 Joseph Minardi, Salvatore Minardi, and Grace Minardi was Joseph Minardi, Salvatore Minardi, and Grace Minardi. The signatory for RedHoek+Partners was Lee Cohen.

The purchase was financed with a $6 million loan from BridgeCity Capital.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer RedHoek+Partners purchased 10 properties in three transactions for a total of $16.2 million and has no record it sold any properties over the past 24 months.
The seller Arlene Sardell had not purchased any other properties and had not sold any properties over the same time period. The 7,600-square-foot property generated revenue of $216,448 or $28 per square foot, according to the most recent income and expense figures.

The property

The 356-368 Avenue U parcel has frontage of 100 feet and is 60 feet deep with a total lot size of 6,001 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1 million.

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 Gravesend, the bulk, or 39 percent of the 18.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has had very little sales volume relative to other neighborhoods with $256.1 million in sales volume in the last two years. For development, Gravesend has 1.2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing zero square feet of the 7,600 square feet. The identified owner is RedHoek+Partners.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 7,600 square feet of built space are retail buildings, with specialty buildings next occupying 0 percent of the space.

The buyer

The PincusCo database currently indicates that Redhoek+Partners owned at least 12 commercial properties in New York City with 18,270 square feet and a city-determined market value of $4.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 63 percent of the 18,270 square feet of built space are elevator properties, with mixed-use properties next occupying 34 percent of the space. They are all located in Brooklyn.

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