Slate pays $42.6M to Salvation Army in Fort Greene

Slate Property Group through the entity Hanson Street Propco LLC paid $42.6 million to Salvation Army through the entity The Salvation Army, A New York Corp for specialty building (N2) at 62 Hanson Place in Fort Greene, Brooklyn and industrial building (G7) at 68 Hanson Place in Fort Greene, Brooklyn.
The deal closed on September 30, 2022 and was recorded on October 7, 2022. The two properties have 57,200 square feet of built space and 44,883 square feet of additional air rights for a total buildable of 102,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $744 and the price per buildable square foot is $417 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 Salvation Army was Charles S. Foster. The signatory for Slate Property Group was David Schwartz. The contract date is December 1, 2021, more than 10 months ago. The Commercial Observer reported on the sale on Friday.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 62 Hanson Place.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Slate Property Group purchased 10 properties in nine transactions for a total of $306.7 million and sold two properties in two transactions for a total of $31.8 million over the past 24 months.
The seller Salvation Army had not purchased any other properties and sold four properties in three transactions for a total of $43.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Damon Rader, head officer and Austin Hastings, site manager. The business entity is The Salvation Army.

The property

The 62 Hanson Place parcel has frontage of 60 feet and is 275 feet deep with a total lot size of 23,700 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received three DOB violations, one housing violation, and $550 in OATH penalties 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 Fort Greene, the bulk, or 28 percent of the 11.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 25 percent of the space. In sales, Fort Greene has 1.4 times the average sales volume among other neighborhoods with $483.8 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Fort Greene has 2.4 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On the tax block, there were two new building construction projects totaling 93,282 square feet. The largest is a 104-unit, 86,391-square-foot R-2 building developed by Michael Rooney with plans filed May 15, 2019 and permitted March 31, 2022. The second largest is a five-unit, 6,891-square-foot R-2 building developed by Maria Villafane with plans filed December 3, 2015 and it has not been permitted yet.

The majority, or 100 percent of the 30,400 square feet of built space are office buildings.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 55 commercial properties in New York City with 1,859,845 square feet and a city-determined market value of $461.4 million. (Market value is typically about 50% of actual value.) The portfolio has $999.8 million in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 65 percent of the 1,859,845 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

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