Turnbridge Equities pays $13M for six specialty properties in Gravesend
Turnbridge Equities through the entity 2647 Stillwell Avenue Property LLC paid $13 million to the Paolino family through the entity 3285 Management LLC for six properties including the specialty building (Z9) at 2320 Shore Parkway in Gravesend, Brooklyn.
The deal closed on May 11, 2023 and was recorded on May 18, 2023. The six properties have 5,000 square feet of built space and 160,760 square feet of additional air rights for a total buildable of 165,782 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,600 and the price per buildable square foot is $78 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 signatories for the Paolino famiy were Angela Paolino-Thompson, Michael Paolino, and Thomas Paolino. The signatory for Turnbridge Equities was Ryan Nelson.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer Turnbridge Equities purchased five properties in three transactions for a total of $37.8 million and has no record it sold any properties over the past 24 months.
The seller Angela Paolino-Thompson had not purchased any other properties and had not sold any properties over the same time period.
The property
The specialty building in Gravesend has 5,000 square feet of built space and 160,760 square feet of additional air rights for a total buildable of 165,782 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 188 feet deep with a total lot size of 43,999 square feet. The lot is irregular. 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 $341,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
The neighborhood
In Gravesend, The bulk, or 40 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has near average sales volume among other neighborhoods with $367 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Gravesend has had very little major development activity relative to other neighborhoods.It had 643,211 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On the tax block PincusCo has identified the owners of eight of the 53 commercial properties representing 209,988 square feet of the 327,127 square feet. The largest owner is Cubesmart, followed by Consolidated Edison and then City of New York.
On the tax block, there were three new building construction projects totaling 72,113 square feet. The largest is a 68,910 square-foot business (B) building submitted by Jim Eagleton with plans filed May 23, 2017 and permitted January 21, 2020. The second largest is a 2,016 square-foot business (B) building submitted by Monachan Mathai with plans filed April 21, 2021 and it has not been permitted yet.
The majority, or 89 percent of the 327,127 square feet of built space are industrial buildings, with office buildings next occupying 7 percent of the space.
The buyer
The PincusCo database currently indicates that Turnbridge Equities owned at least seven commercial properties in New York City with 242,958 square feet and a city-determined market value of $24.4 million. (Market value is typically about 50% of actual value.) The portfolio has $454.3 million in debt, with top three lenders as KKR & Co., Starwood Capital Group, and Aresif Lender Llc respectively. Within the portfolio, the bulk, or 100 percent of the 242,958 square feet of built space are industrial properties, with V1 properties next occupying 0 percent of the space. The bulk, or 53 percent of the built space, is in Queens, with Brooklyn next at 37 percent of the space.
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