The Real Deal New York

Flatbush site with rare tax abatement asks $20M

January 13, 2014 10:00AM

A development site in Brooklyn’s Flatbush neighborhood with an unusual tax abatement is asking $20 million. Senior care provider New York Congregational Community Services is selling a four-story building at 123 Linden Boulevard that would allow for a 250,000-square-foot residential development.

The site could also be used to build a 316,000-square-foot community building under its current zoning, according to the Wall Street Journal. It is being marketed by Massey Knakal Realty Services’ James Nelson and Nick Mahedy.

A buyer could avail themselves of a 15-year tax abatement through the 421a program, which generally requires that at least 20 percent of new units in a new development be affordable. This site, however, is eligible for the tax abatement even if a purely market-rate apartment building were to be built, Nelson told the Journal.

Nelson added that the relatively affordable land – about $80 per buildable square foot compared to the $300 per buildable square foot in Brooklyn neighborhoods that are closer to Manhattan – would appeal to developers. [WSJ, 2nd item]  – Hiten Samtani