Turnbridge Equities pays $16.6M for industrial properties in Bergen Beach

Turnbridge Equities through the entity 2300 69 Street Property LLC paid $16.6 million to Peter K. Tully through the entity Tully-Willets Realty Co., LLC for the industrial building (F9) at 2300 East 69th Street in Bergen Beach, Brooklyn, specialty building (Z9) at 2250 East 69th Street in Bergen Beach, Brooklyn, and industrial building (G7) at N/A East 69th Street in Bergen Beach, Brooklyn.
The deal closed on February 27, 2024 and was recorded on March 4, 2024. The three properties have 11,275 square feet of built space and 98,736 square feet of additional air rights for a total buildable of 109,836 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,472 and the price per buildable square foot is $151 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 Peter K. Tully was Peter K. Tully. The signatory for Turnbridge Equities was Ryan Nelson. The contract date was August 31, 2023. The property has been occupied by Falco Construction.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Turnbridge Equities purchased 10 properties in three transactions for a total of $37.1 million and sold one property in one transaction for a total of $57 million over the past 24 months.
The seller Peter K. Tully had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Bergen Beach has 11,275 square feet of built space and 98,736 square feet of additional air rights for a total buildable of 109,836 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 M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $1.4 million.

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 Bergen Beach, The bulk, or 39 percent of the 951,589 square feet of commercial built space are specialty buildings, with retail buildings next occupying 27 percent of the space. In sales, Bergen Beach has the 46th highest sale turnover among other neighborhoods in Brooklyn with $14.9 million in sales volume in the last two years. For development, Bergen Beach has had very little major development activity relative to other neighborhoods.It had 211,009 square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

All properties are industrial.

The buyer

The PincusCo database currently indicates that Turnbridge Equities owned at least 13 commercial properties in New York City with 168,371 square feet and a city-determined market value of $14 million. (Market value is typically about 50% of actual value.) The portfolio has $445.5 million in debt, with top three lenders as KKR & Co., Starwood Capital Group, and East West Bank respectively. Within the portfolio, the bulk, or 69 percent of the 168,371 square feet of built space are industrial properties, with P9 properties next occupying 29 percent of the space. The bulk, or 84 percent of the built space, is in Brooklyn, with Bronx next at 16 percent of the space.

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