Slate Property Group pays $12M for dev site in Gowanus with 67-unit project filed

Slate Property Group through the entity 224 Third Ave Owner LLC paid $12 million to the entity Abatemarco Realty Corporation for a development site industrial building (G2) at 224 3rd Avenue in Gowanus, Brooklyn.
The deal closed on November 8, 2022 and was recorded on November 10, 2022. The property has 8,500 square feet of built space.
The signatory for the seller was Anthony J. Dimaso. The signatory for Slate Property Group was Martin Nussbaum.

AGM Deco, on May 4, 2022, filed a permit application for the construction of a 67-unit, 47,914-square-foot mixed-use building at 224 3rd Avenue and a 34-unit, 27,535-square-foot residential building. AGM Deco is a facade engineering, manufacturing, and installation company.

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 $340.3 million and sold three properties in three transactions for a total of $33.1 million over the past 24 months.
The seller Anthony J. Dimaso had not purchased any other properties and had not sold any properties over the same time period. The 8,500-square-foot property generated revenue of $125,545 or $15 per square foot, according to the most recent income and expense figures.

The property

The 224 3rd Avenue parcel has frontage of 69 feet and is 63 feet deep with a total lot size of 8,469 square feet. The lot is irregular.

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

On the lot, there is one active new building construction project for a 67-unit, 47,148 square-foot R-2 building. The project was developed by Abe Lipton with plans filed May 4, 2022 and it has not been permitted yet.

The neighborhood

In Gowanus, the bulk, or 47 percent of the 9.3 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 1.4 times the average sales volume among other neighborhoods with $484.3 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Gowanus is the 8th most active neighborhood among other neighborhoods. It had 4.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 50 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 41,050 square feet of the 68,214 square feet. The identified owner is Domain Companies.
On the tax block, there were three new building construction projects totaling 550,629 square feet. The largest is a 291-unit, 258,599-square-foot R-2 building developed by Marino Mazzei with plans filed February 4, 2022 and it has not been permitted yet.The second largest is a 268-unit, 244,882-square-foot R-2 building developed by Peter Papamichael with plans filed October 28, 2021 and it has not been permitted yet.

The majority, or 83 percent of the 68,214 square feet of built space are industrial buildings, with retail buildings next occupying 17 percent of the space.

The buyer

The PincusCo database currently indicates that Slate Property Group owned at least 57 commercial properties in New York City with 1,917,045 square feet and a city-determined market value of $467.6 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 63 percent of the 1,917,045 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

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