Safehold pays $33.2M for ground-leased fee under rental project in Downtown Brooklyn

Safehold Inc. through the entity 67 Prince Street Ground Owner LLC paid $33.2 million to Joy Construction through the entity YYY Brooklyn NY LLC for the ground-leased fee at 67 Prince Street also known as 202 Tillary Street in Downtown Brooklyn. Joy Construction filed plans for a 465-unit rental building at the site in July 2021.
The deal closed on November 12, 2021 and was recorded on November 29, 2021. The leasehold was created on November 12, 2021 and runs for 99 years to November 2120.
Safehold has acquired at least eight ground leases in the past two years valued at $1.8 billion in New York City, with the bulk of that in 2019. However, in 2021, the firm has recorded three sales including this one, for a total of $157.2 million.
The property has 114,500 square feet of built space and 140,259 square feet of additional air rights for a total buildable of 254,820 square feet according to PincusCo analysis of city data. The sale price per built square foot is $290 and the price per buildable square foot is $130 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 Joy Construction was Eli Weiss. The signatory for Safehold Inc. was Doug Heitner.

Within a 400-foot radius of 67 Prince Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was in new building development. It was a new building permit application filed on July 9, 2021 for a 389,226-square-foot R-2 building with 465 residential units at 202 Tillary Street.
One of those two items was a loan which Triumph Hotels borrowed $13 million from Popular Bank secured by the 65,645-square-foot, 48-unit industrial (N2) on 194 Tillary Street on December 29, 2020.

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