Gotham Capital buys DoBro resi property for $47M

The site on Willoughby Street last sold for just $12 million
By Ariel Stulberg | June 09, 2016 02:52PM

68 Willoughby Street in Downtown Brooklyn

68-78 Willoughby Street in Downtown Brooklyn

UPDATED, 1:50 p.m., June 10: A group of investors led by Kenneth Hirsch’s Gotham Capital Realty just picked up a 28,000-square-foot residential-and-retail property in Downtown Brooklyn.

The buyers paid $46.6 million for the property on four city lots at 68-78 Willoughby Street, according to property records filed with the city Thursday.

The building, constructed in 1920, contains 30 rental apartments in addition to four retail spaces.

Gotham Capital Realty took out a $22.5 million acquisition loan to finance the buy, borrowing the cash from First Republic Bank, according to the records.

The seller was another group of investors led by Samson Klugman and Joel Hirsch of Quality Capital USA, which bought the property back in 2013 for $12 million. The property’s air rights were transferred to the Stahl Organization’s 378-unit 388 Bridge Street tower in 2012.

In August of last year, Quality Capital paid $60 million for a pair of mixed-use buildings 827-829 and 831 Broadway.

Neither Hirsch nor either of the Quality Capital principals were available to comment.

Hirsch founded Gotham Capital in 2005 according to his LinkedIn page. Just last month, it closed on the $35 million sale of the 124,000-square-foot rental building at 60 East 12th Street just south of Union Square.

Just down the road, at 57 Willoughby Street, Helen Keller Services for the Blind is marketing a 96,000-square-foot office building. That property has 200,000 square feet of development rights. Sources told The Real Deal it could fetch as much as $80 million.

Correction: A previous version of this story stated that the building was an office property, it is actually a residential and retail building. It also asserted that the property included development rights, but those rights were actually transferred in 2012. Additionally, the article said Gotham bought 60 East 12th Street for $35 million. It actually sold it for that amount.