The Real Deal New York

Cleveland company acquires Flatbush Ave. ground lease for $92M

Angelo Gordon's building at 30 Flatbush Avenue is first NYC purchase for Stark Enterprises
By Eddie Small | November 15, 2017 03:56PM

30 Flatbush Avenue (Credit: Google Maps)

Cleveland-based real estate company Stark Enterprises has moved into the New York market with its $92 million purchase of the ground lease at 30 Flatbush Avenue in Downtown Brooklyn, according to property records.

The seven-story commercial office building spans 250,000 square feet, and Stark financed the purchase with a $75 million loan from Great American Insurance Company. The site is near Fort Greene Park on a triangular-shaped lot bound by Flatbush Avenue, Livingston Street and Nevins Street.

Angelo, Gordon & Co. had been looking to sell the ground lease at the building for $100 million and hired JLL brokers to market the space. The city owns the land under the building and can take control of the property in 54 years, once the lease expires.

The building is net leased to Con Edison, which has been a tenant there since the early 1970s. The rent is scheduled to reset in about 10 years.

Ezra Stark, chief operating officer of Stark Enterprises, said the deal was a joint venture with Sun Equity Partners and that they would look into using the space for affordable housing.

“We see a lack of affordable housing, especially in Brooklyn, and we think we can provide some affordable housing component potentially there so as to maintain diversity in the neighborhood,” he said.

The company bought a car wash site earlier this year in Los Angeles for $21 million, where it plans to build a 96-unit apartment complex.

Angelo, Gordon & Co., based in Midtown, is one of the owners of Industry City, which has been courting tech giant Amazon for its second North American headquarters.