San Francisco’s Terreno Realty pays $11.9M for industrial in East Williamsburg

San Francisco-based Terreno Realty Corporation through the entity Terreno 1215 Walnut LLC paid $11.9 million to Henry Burney through the entity Sfm181, LLC for the industrial building (F4) at 181 Lombardy Street in East Williamsburg, Brooklyn.
The deal closed on March 22, 2024 and was recorded on March 25, 2024. The property has 24,000 square feet of built space and 35,998 square feet of additional air rights for a total buildable of 59,998 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $497 and the price per buildable square foot is $199 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 Henry Burney was Henry Burney. The signatory for Terreno Realty Corporation was attorney Christine Falco. The contract date was February 5, 2024. The property was occupied by Superior Fibers which was owned by the Burney family.

According to Terreno Realty’s website, “Terreno acquires, owns and operates industrial real estate in six major coastal U.S. markets. Exclusively. Functional, flexible, infill real estate located at the intersection of growing demand and limited, or even shrinking, supply.”

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Terreno Realty Corporation purchased one property in one transactions for a total of $23 million and has no record it sold any properties over the past 24 months.
The seller Henry Burney had not purchased any other properties and had not sold any properties over the same time period. The 24,000-square-foot property generated revenue of $564,386 or $24 per square foot, according to the most recent income and expense figures.

The property

The industrial building in East Williamsburg has 24,000 square feet of built space and 35,998 square feet of additional air rights for a total buildable of 59,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 200 feet deep with a total lot size of 29,999 square feet. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2.9 million.

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

On the lot, there is one active major alteration construction project for a 24,000 square-foot F-2 building. The project was submitted by Ben Silverman with plans filed April 21, 2020 and permitted October 27, 2020.

The neighborhood

In East Williamsburg, The majority, or 62 percent of the 17 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 11 percent of the space. In sales, East Williamsburg has near average sales volume among other neighborhoods with $302.2 million in sales volume in the last two years and is the 26th highest in Brooklyn. For development, East Williamsburg has had very little major development activity relative to other neighborhoods.It had 717,108 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 22,500 square feet of the 76,600 square feet. The identified owner is Katherine Chao.
There are no active new building construction projects on this tax block.

All properties are industrial.

The buyer

The PincusCo database currently indicates that Terreno Realty Corporation owned at least five commercial properties in New York City with 299,628 square feet and a city-determined market value of $29.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. The bulk, or 65 percent of the built space, is in Brooklyn, with Queens next at 35 percent of the space.

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