Terreno Realty pays $27.5M to Lande Alexander for industrial in Red Hook

Terreno Realty through the entity Terreno New Ridge LLC paid $27.5 million to Lande Alexander through the entity Lande Alexander Properties Inc. for the industrial building (E1) at 185 Van Dyke Street in Red Hook, Brooklyn.
The deal closed on October 11, 2023 and was recorded on October 17, 2023. The property has 111,265 square feet of built space and 214,910 square feet of additional air rights for a total buildable of 325,622 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $247 and the price per buildable square foot is $84 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 Lande Alexander was Brian Robbins. The signatory for Terreno Realty was Hayes Graham. The contract date was August 23, 2023. Press release

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Terreno Realty had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Lande Alexander had not purchased any other properties and sold one property in one transaction for a total of $10.2 million over the same time period.

The property

The industrial building in Red Hook has 111,265 square feet of built space and 214,910 square feet of additional air rights for a total buildable of 325,622 square feet according to a PincusCo analysis of city data. The parcel has frontage of 410 feet and is 549 feet deep with a total lot size of 162,811 square feet. The lot is irregular. The zoning is M2-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $9.4 million. The most recent loan totaled $7.5 million and was provided by Patriot Bank on December 12, 2022.

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 received $1,000 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 112,345 square-foot F-1 building. The project was submitted by Brian Robbins with plans filed May 12, 2020 and permitted September 2, 2021.

The neighborhood

In Red Hook, The bulk, or 49 percent of the 9.4 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 30 percent of the space. In sales, Red Hook has 1.6 times the average sales volume among other neighborhoods with $578.6 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Red Hook has had very little major development activity relative to other neighborhoods.It had 411,210 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 two of the seven commercial properties representing 129,165 square feet of the 433,265 square feet. The two identified owners are O’Connell Organization and Lande Alexander.
There are no active new building construction projects on this tax block.

The majority, or 82 percent of the 433,265 square feet of built space are industrial buildings, with specialty buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Lande Alexander owned at least one commercial property in New York City with 111,265 square feet and a city-determined market value of $9.4 million. (Market value is typically about 50% of actual value.) The portfolio has $7.5 million in debt, borrowed from Patriot Bank. The portfolio consists of at least a single industrial property. It is located in Brooklyn.

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