Madison Realty Capital to buy Sunset Park warehouses for $37M

Pair of buildings spanning 163K sf sits a short walk from Industry City

TRD New York /
Apr.April 18, 2016 01:10 PM

Madison Realty Capital is closing in on a deal to buy a pair of vacant warehouses near Industry City for $37 million, adding to its growing portfolio of properties in Brooklyn’s expanding office market.

The Midtown-based investment firm, founded in 2004 by Josh Zegen and Brian Shatz, is in contract to buy the adjacent properties at 341-353 39th Street in Sunset Park, which combine for just shy of 163,000 square feet.

“With this one we have about 1 million square feet of office in Brooklyn,” Zegen told The Real Deal. “They were delivered vacant, which really allows us to start work immediately.”

The price works out to about $227 per square foot for the buildings. The seller the Hampshire Companies out of New Jersey bought the buildings for $18.5 million in 2013 and then began buying out tenants to vacate the properties.

Bob Knakal of Cushman & Wakefield marketed the property on behalf of the Hampshire Companies. He did not return calls for comment.

The 10- and 7-story buildings sit mid-block on 39th Street just a short walk away from the southern edge of Industry City, the 6 million-square-foot complex that’s being repositioned to suit TAMI and manufacturing tenants.

It’s by far the largest project in Brooklyn’s emerging office market, which ranks as the sixth-largest in the country. As of January, Industry City had leased up 2.9 million square feet, according to a tally by TRD of the borough’s biggest office projects.

And the growing popularity of the market has certainly caught the attention of Madison Realty. Last year the company bought a former storage warehouse at 29 Ryerson Street near the Brooklyn Navy Yard for $45 million, followed by the purchase of the former Brooklyn Whale Building in Sunset Park for $82.5 million.

David Falk and Eric Cagner of Newmark Grubb Knight Frank are heading up leasing at the Whale Building, and will do the same at Madison’s new property.


Related Articles

arrow_forward_ios
Ilan Bracha, Haim Binstock and 39 East 72nd Street (Getty, Elliman)

Vanderbilt mansion condo conversion in foreclosure

Vanderbilt mansion condo conversion in foreclosure
Mortgage lenders are beginning to see missed rent payments from office buildings. (Credit: iStock)

Add office tenants to the list of those not paying rent

Add office tenants to the list of those not paying rent
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

How to open up our offices on tonight’s TRD Talk

How to open up our offices on tonight’s TRD Talk
Brian Harris, CEO of Ladder Capital (Credit: iStock)

“What, me worry?” Ladder Capital says it can easily meet margin calls

“What, me worry?” Ladder Capital says it can easily meet margin calls
150 East 45th Street and Children’s Aid president Phoebe Boyer (Credit: Google Maps)

Children’s Aid Society sells Midtown HQ

Children’s Aid Society sells Midtown HQ
Rockrose Development Justin Elghanayan and 98 DeKalb Avenue in Brooklyn (Credit: Google Maps)

Rockrose closes $81M all-cash Brooklyn buy

Rockrose closes $81M all-cash Brooklyn buy
Ladder Capital's Brian Harris and Madison Realty Capital's Josh Zegen (Credit: Ladder Capital; Madison Realty Capital)

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff
David Schechtman, Bob Knakal, Peter Von der Ahe

Top I-sales brokers on what to do when there are no deals

Top I-sales brokers on what to do when there are no deals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...