The Real Deal New York

Massey Knakal’s Brooklyn headquarters building listed for $49M

January 25, 2011 12:05PM
By Adam Pincus

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From left: 205 Montague Avenue, Joseph Cayre, Paul Massey and David Schechtman

Joseph Cayre’s Midtown Equities has put the Downtown Brooklyn building that is home to brokerage Massey Knakal Realty Services on the market for $49 million, only six months after Cayre bought the building for $33 million.

Brooklyn has seen a 21 percent increase in total investment sales in 2010, rising to $962.5 million, compared to a year earlier when it was $796.8 million, figures from Massey Knakal show. However, those figures are still far below the market’s peak in 2007 when $3.8 billion in properties traded hands in the borough.

The 77,250-square-foot Class A office and retail building at 205 Montague Street is being marketed by Eastern Consolidated brokers David Schechtman, a senior director, and Lipa Lieberman and Marion Jones Pavone, both directors.

Massey Knakal rents 18,750 square feet on the third floor, on a lease that runs until 2016. Sources have said the rent is about $30 per square foot.

The increase in asking price compared to the purchase price for the five-story office and retail building indicates greater optimism in the investment sales market, which is seeing a return of the flip. Cayre wasn’t immediately available for comment.

Last week, Ziel Feldman’s HFZ Capital Group put the development site at 20 West 40th Street fronting Bryant Park on the market, asking $85 million for the site he closed on in June for $46 million.

In August, Massey Knakal said the firm was looking to sublet the space and move to an office in the same neighborhood about half the size. Sources said Kirkland, Wash., based Internet service provider Clearwire was considering taking the space. However, today, company CEO Paul Massey told The Real Deal that now the brokerage is considering remaining in the building, because it is growing its retail and mortgage business.

In addition to Massey Knakal, the fully-leased building located between Pierrepont Street and Cadman Plaza West has two banks as retail tenants, TD Bank and Bank of America.

Midtown Equities is a major landlord and owns investments in scores of buildings in New York City. It bought 205 Montague Street in July 2010, after acquiring 200 Montague Street, across the street, for $25 million in March 2007.

The building, known as the Crossland Savings Bank, was the location where Jackie Robinson signed to play for the Brooklyn Dodgers, breaking the color barrier in major league baseball.

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