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Gilad to take full ownership of Brookland
Brookland revenues fell to $5M from $18M in third quarter
Boaz Gilad, co-founder and principal of prolific developer Brookland Capital, is taking 100 percent ownership of the parent company, Brookland Upreal, according to documents filed on the Tel Aviv Stock Exchange.
Gilad bought out his partner Asaf Fitoussi earlier this year, to take full ownership of Brookland Capital, which controls 51 percent of the parent company. Now, Gilad is buying the remaining 49 percent stake from David Goldberger and Eyal Yagev for $7.5 million over three years.
Once the deal closes next week, Goldberger and Yagev will leave their respective positions of vice president and director, but continue to represent investors while they complete several joint projects.
Shortly after Fitoussi’s exit, Azorim, one of Israel’s largest real estate developers, entered negotiations to buy a 25.5 percent stake in Brookland Upreal, but bowed out in June.
By number of projects, Brookland, which specializes in small condominium developments, is by far the most prolific builder in Brooklyn, if not in New York City. In 2016, Brookland brought in $66 million in revenue from condo sales last year, but revenue fell significantly in 2017, to $18 million through September, the company reported to TASE. In an note on the report, Brookland explained the decrease as a result of their shift to mid-size multifamily projects, which take longer to develop.
One such project is a 67-unit condo in Flatbush at 88-92 Linden Boulevard.
The company was recently rated BBB+ and is preparing to issue an additional $24 million of its series B bond, in order to refinance its series A bond.
“It was done on great terms,” said Gilad, who explained the takeover as a result of the company’s shift into mid-size multifamily development.