RedHoek+Partners pays $8.5M for dev site in Gravesend

RedHoek+Partners through the entity Ddg 346 Ave U Owner LLC paid $8.5 million to John Torregrossa through the entity Andrew Torregrossa & Sons Inc. for a development site at 346 Avenue U in Gravesend, Brooklyn.
The deal closed on March 31, 2022 and was recorded on April 14, 2022. The property has zero square feet of built space and 28,740 square feet of additional air rights for a total buildable of 28,740 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $294 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 John Torregrossa was John Torregrossa. The signatory for RedHoek+Partners was Lee Cohen. Lee Cohen is the CEO of RedHoek+Partners.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RedHoek+Partners purchased nine properties in two transactions for a total of $7.8 million and has no record it sold any properties over the past 24 months.
The seller John Torregrossa had not purchased any other properties and sold one property in one transaction for a total of $10.1 million over the same time period.

The property

The 346 Avenue U parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,580 square feet. The lot is irregular. 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 $585,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. 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 50 percent of the 45.7 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 23 percent of the space. In sales, Gravesend has had very little sales volume relative to other neighborhoods with $200.3 million in sales volume in the last two years. For development, Gravesend has near average amount of major developments among other neighborhoods and is the 19th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 88 percent of the 121,451 square feet of built space are 1-4 family buildings, with retail buildings next occupying 6 percent of the space.

The buyer

The PincusCo database currently indicates that RedHoek+Partners owned at least nine commercial properties with 6,837 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 6,837 square feet of built space are mixed-use properties, with industrial properties next occupying 8 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 346 Avenue U, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Magen Abraham Yeshiva bought the 15,960-square-foot, one-unit mixed-use building (K4) on 345 Avenue U for $10.1 million from John Torregrossa on April 12, 2022.

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