The Real Deal New York

Madison Realty Capital buys Brooklyn factory site for $23.5M

Site, which allows for 110,000 buildable square feet, home to kosher Beigel's Bakery
By Claire Moses | November 05, 2014 12:12PM

UPDATED 12:45 p.m., November 5: Madison Realty Capital bought a bagel factory in Downtown Brooklyn for $23.5 million, according to property records filed with the city today. The site holds roughly 110,000 buildable square feet, and is currently zoned for residential use.

A Brooklyn-based entity called Broadway Equities R.E. LLC, headed by Martin Gordon, is selling the property, located at 551 Waverly Avenue. Beigel’s Bakery — a kosher, family-owned bakery that has been in business since 1948 — is the sole tenant at the three-story property, built in 1915.

Madison Realty, headed by Josh Zegen, declined to comment on the transaction. It is an active player in both the real estate financing space and the small-to-mid-sized investment sales market. Earlier this year, it purchased two Chelsea buildings and sold an Upper Manhattan portfolio, and also helped finance Sharif El-Gamal’s 45 Park Place project.

Correction: A previous version of this story incorrectly identified Sharif El-Gamal’s project. It Is 45 Park Place.

  • crazy

    wow… 250 / per build-able ft…. throw in an extra 350 a foot to develop it….. you’re looking at roughly 600 a foot – all in cost of 56 million. sell condos for 750 a foot and get sales of 70 million…. after transaction / financing costs, you’re barely making a profit here….this is considering the market stays HOT the next 3 years when these apartments hit the market

    • Graveshift

      Its not a condo deal.. Fully leased luxury rental buildings sell for up to $1,000 psf and its cap gains, not ordinary income. If anything deal sounds cheap.

  • Jonathan Arnold

    New developments are about to hit $3,000 /sf in Manhattan.
    Probably figures you will be able to get $1,000 /sf in 3 years. Probably right considering there is nowhere else to go.

    • Ay

      Where did you get 750 per sf from. It’s going to be a rental and even if it wasn’t, by time completed, condos would go 1300 per sf

      • watchnsee

        another stupid broker thinking prices go nowhere but up and up LOL!!! the good times are about to end my friend. going from a sellers to buyers market by next summer

  • jackass

    when its not your $$$$ ???????