Yitzchok Katz pays $15.2M to add to dev site in Gowanus

Yitzchok Katz through the entity 172 Third Ave LLC paid $15.2 million to Dominick Cappolla Jr. through the entity Domal Transportation, Inc. for the industrial building (E1) at 264 Butler Street in Gowanus, Brooklyn. The expected use is ground up development. This purchase is adjacent to 172 3rd Avenue which Katz bought in November 2024 for $22 million.
The deal closed on August 19, 2025 and was recorded on August 27, 2025. The property has 17,413 square feet of built space and 35,000 square feet of additional air rights for a total buildable of 52,500 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $875 and the price per buildable square foot is $290 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 Dominick Cappolla Jr. was Dominick Cappolla Jr. The signatory for Yitzchok Katz was Yitzchok Katz. The contract date was August 19, 2025. Yitzchok Katz is affiliated with Goose Property Management and the care of address in Acris is in the same building as Rabsky Group.

The property

The industrial building in Gowanus has 17,413 square feet of built space and 35,000 square feet of additional air rights for a total buildable of 52,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 100 feet deep with a total lot size of 17,500 square feet. The zoning is M1-4/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2 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 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 Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.6 times the average sales volume among other neighborhoods with $726.6 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Gowanus has 1.5 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 23 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 this tax block, PincusCo has identified the owners of three of the eight commercial properties representing 69,334 square feet of the 96,884 square feet. The two identified owners are Goose Property Management and Canyon Partners.
On the tax block, there were two new building construction projects totaling 243,661 square feet. The largest is a 261-unit, 223,886 square-foot residential (R-2) building submitted by Tavros Capital Partners and filed by Dov Barnett with plans filed November 16, 2021 and permitted April 29, 2022. The second largest is a 19,775 square-foot storage (S-2) building submitted by Jack Elo with plans filed June 20, 2017 and it has not been permitted yet.

The majority, or 51 percent of the 96,884 square feet of built space are office buildings, with industrial buildings next occupying 49 percent of the space.

The buyer

The PincusCo database currently indicates that Yitzchok Katz owned at least 17 commercial properties with 656 residential units in New York City with 192,232 square feet and a city-determined market value of $27.4 million. (Market value is typically about 50% of actual value.) The portfolio has $580.5 million in debt, with top three lenders as Berkadia Commercial Mortgage, Affinius Capital, and G4 Capital Partners respectively. Within the portfolio, the bulk, or 69 percent of the 192,232 square feet of built space are elevator properties, with development properties next occupying 14 percent of the space. The bulk, or 59 percent of the built space, is in Brooklyn, with Queens next at 41 percent of the space.

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