The Real Deal New York

Bawabeh sells 428K-square-foot Brooklyn site for $40M

Parcel of land to become parcel distribution center for FedEx

February 12, 2014 02:25PM
By Mark Maurer

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830-fountain

Ofer Cohen and 830 Fountain Avenue

Brooklyn-based developer Bawabeh Realty Holdings sold a 428,550-square-foot vacant parcel near the Gateway Center for $40 million after scrapping plans to build a big-box retail complex, The Real Deal has learned.

Bawabeh acquired the site at 830 Fountain Avenue, also known 12600 Flatlands Avenue, in East New York for just $15.6 million in 2004.

The buyers, Midtown-based Parkwill Management Corp. and North Carolina-based SunCap Property Group, plan to develop a FedEx distribution facility there, TerraCRG founder Ofer Cohen told The Real Deal.

Last month, Parkwill took out a $44.5 million mortgage from PNC Bank, property records show. Parkwill is affiliated with Richard Zirinsky Associates, founded by the veteran namesake developer who died in 2002.

Cohen represented the seller, while James Rougan of Cushman & Wakefield represented the buyers. The site was marketed without a formal asking price, Cohen said. Parkwill and Bawabeh declined to comment. SunCap could not be immediately reached.

“The sellers decided to sell because the site no longer met their investment criteria,” Cohen told The Real Deal.

The city had approved Bawabeh’s building permits for a retail center, but waited for the nearby Gateway Center to complete its expansion project, a source told The Real Deal. The developer abandoned plans after receiving an offer for the site, a source said.

Adam Pincus contributed to this report.

  • Victor

    $40 million? Wow that should buy a lot of kibbeh.

  • locker locations are meh

    jobs, jobs, jobs – I think NYC needs to get Amazon to sink some money in here. My letter carrier’s truck is filled with Amazon boxes every day and she is always in a rush to get things delivered asap.

    Manhattan could use some kind of organized Amazon pick up center locations since many buildings don’t have doormen.

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