Adam America Real Estate Group, Slate Property Group and AEW Capital Management executed the long-term ground lease at a Park Slope development site on Fourth Avenue, The Real Deal has learned. The trio will develop a $100 million mixed-use residential and retail property with 141 rental apartments at the site, which allows for more than 118,000 buildable square feet and has 200 feet of retail frontage.
The partners paid close to the asking price of $10 per buildable square foot, or about $1.18 million in annual rent, for the site, located at 535 Fourth Avenue between 14th and 15th streets. A CPEX Real Estate team led by Sean Kelly and Matt Dzbanek brokered the transaction. A source familiar with the deal said the 99-year lease’s net present value was about $25 million.
“It’s a rare situation that you’re in between two amazing neighborhoods [Park Slope and Gowanus] with the subway right there,” said Slate principal David Schwartz. Aufgang Architects is designing the project, which will contain units ranging from studios to three-bedroom apartments with rents likely starting at around $2,000 per month, Schwartz said.
He also noted the avenue’s retail potential, saying that any retailers eyeing a large footprint in the area would look to set up shop there.
This is Adam America and Slate’s third deal in the area. The duo joined forces with Israel-based Naveh Shuster Limited to buy a development site at 470 Fourth Avenue in February for $20 million, as TRD reported. And in July, Slate principals Schwartz and Martin Nussbaum, then still at Silverstone Property Group, teamed up with Adam America to buy a development site at 275 Fourth Avenue for $14.8 million.
Slate also added to its portfolio a 14,644-square-foot, four-story, 20-unit rental apartment building at 310 12th Street. It paid $6 million for that property. The development firm, which Nussbaum formed after breaking away from Silverstone Property Group in December, plans to spend about half a billion dollars in the next two years on acquisitions, Schwartz said.