The Real Deal New York

Rector Hylan to buy proposed FedEx plant in East New York for $190M: sources

SunCap, Parkwill selling massive site to BK investors tied to Spitzer's W'burg deal

June 04, 2015 02:00PM
By Mark Maurer

From left: Flint McNaughton and a FedEx distribution center

From left: Flint McNaughton and a FedEx distribution center

Parkwill Management Corp. and SunCap Property Group are in contract to sell the proposed site of a new FedEx distribution center in East New York for about $190 million, The Real Deal has learned.

Just last year, the Zirinsky family’s Midtown East-based Parkwill and North Carolina-based partner SunCap, which have developed other FedEx facilities, paid $40 million for the then-vacant site at 830 Fountain Avenue, which offers just shy of 430,000 buildable square feet.

The buyer, sources told TRD, is Rector Hylan Corp., a Brooklyn-based entity tied to investors Juda Rosonford and Pincus Neiman. Rector Hylan’s most prominent recent deal is the 2014 sale of a 2.8-acre Williamsburg waterfront site to Eliot Spitzer’s Spitzer Enterprises for $165 million. Spitzer is planning a two-building rental complex on the Kent Avenue site.

Developer Bawabeh Realty previously owned the Fountain Avenue site, located near the Gateway Center. The firm sought to build a big-box retail complex there, but scrapped its plans after receiving an offer for the site.

The Rector Hylan purchase, which is expected to close in the next two months, is a 1031 exchange, sources said. Under the deal, the FedEx project would proceed.

Cushman & Wakefield’s James Rougan represented Parkwill and SunCap in the 2014 deal, but it’s unclear which brokers were involved in this pending sale.

A Parkwill representative declined to comment, while neither SunCap nor Rector Hylan could be reached.

East New York has been at the forefront of Mayor Bill de Blasio’s rezoning plan to allow for more affordable housing in the city.