Turnbridge Equities pays $29M for storage building dev site in East New York

Turnbridge Equities through the entity 303 Louisiana Avenue Property LLC paid $29 million to Aaron Menche and Daniel Skura through the entity 237 42nd Street Corp. for the parking lot at 1 Wortman Avenue in East New York, Brooklyn. The expected use is ground up development.
On the lot, there is one active new building construction project, B01085790, for a 88,251 square-foot storage building. The project was submitted by Turnbridge Equities and filed by Kevin Yang with plans filed July 31, 2024 and it has not been permitted yet.
The deal closed on December 11, 2024 and was recorded on December 20, 2024. The property has 88,251 square feet of planned built space according to a PincusCo analysis of city data. The planned price per built square foot is $329 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 Aaron Menche and Daniel Skura was Daniel Skura. The signatory for Turnbridge Equities was Ryan Nelson. The contract date was March 22, 2024.

Turnbridge Equities obtained a $63 million loan for acquisition of the site and for construction, from Acore Capital

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 $38.5 million and sold one property in one transaction for a total of $57 million over the past 24 months.
The seller Aaron Menche had not purchased any other properties and had not sold any properties over the same time period. The 88,436-square-foot property generated revenue of $897,005 or $10 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 200 feet and is 500 feet deep with a total lot size of 99,400 square feet. The lot is irregular. 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 $4 million.

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 $150 in OATH penalties in the last year.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has near average sales volume among other neighborhoods with $253.6 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, East New York is the 9th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block, there was one new building construction project filed totaling 88,251 square feet. It is a 88,251 square-foot 73 building submitted by Turnbridge Equities and filed by Kevin Yang with plans filed July 31, 2024 and it has not been permitted yet.

All properties are industrial.

The buyer

The PincusCo database currently indicates that Turnbridge Equities owned at least 16 commercial properties in New York City with 179,646 square feet and a city-determined market value of $16.5 million. (Market value is typically about 50% of actual value.) The portfolio has $456.6 million in debt, with top three lenders as KKR & Co., Starwood Capital Group, and East West Bank respectively. Within the portfolio, the bulk, or 70 percent of the 179,646 square feet of built space are industrial properties, with P9 properties next occupying 27 percent of the space. The bulk, or 85 percent of the built space, is in Brooklyn, with Bronx next at 15 percent of the space.

Direct link to Acris document. link