The Real Deal New York

These were the biggest Q1 deals in Brooklyn

The roughly $168M deal at 1 North 4th Place in Williamsburg topped the list
By Eddie Small | April 27, 2018 07:00AM

Clockwise from top left: 1 North 4th Place, 461 Dean Street and 95 Evergreen Avenue

UPDATED, 12:06 p.m. April 30: Sales of residential buildings dominated the biggest deals in Brooklyn to kick off the year.

Apartment building deals took up five of the top 10 spots for the borough’s largest transactions during the first quarter of 2018, according to data from Real Capital Analytics. The largest was a residential deal at 1 North 4th Place in Williamsburg for about $167.6 million between buyers Douglaston Development and American International Group and seller MacFarlane Partners. The first quarter also saw one office deal, one retail deal, one development site deal and two industrial deals.

Overall, the top 10 deals were worth about $802 million. This was an uptick from the previous quarter, when they were worth about $692 million in total, but down from the first quarter of 2017, when they were worth roughly $1 billion.

Other notable deals in the first quarter included Forest City’s $156 million sale of 461 Dean Street and Ramrock Real Estate’s $120 million purchase of 95 Evergreen Avenue.

The full list of Brooklyn’s top 10 deals for the first quarter are below:

1. 1 North 4th Place, approximately $167.6 million
Buyer: Douglaston Development, American International Group
Seller: MacFarlane Partners
The top deal in Brooklyn for the first quarter of the year was Douglaston Development’s and AIG’s buyout of MacFarlane Partners’ 40 percent stake of 1 North 4th Place in Williamsburg. The 41-story residential property was built in 2015 and contains 509 units, and Douglaston has claimed it as the first high-rise rental project on the Williamsburg waterfront. Rents at currently available units range from $2,559 for a studio to $6,996 for a three-bedroom.

2. 461 Dean Street, $156 million
Buyer: Principal Global Investors
Seller: Forest City
Forest City Realty Trust’s $156 million sale of modular building 461 Dean Street was number two on Brooklyn’s first quarter list. The 429,752-square-foot rental property has 363 units and was the last Pacific Park property that Forest City had sole ownership of, as it sold most of its stake in the development in January to its partner Greenland USA. Forest City had announced its plan to sell the property in November but did not announce that it had sold until March.

3. 95 Evergreen Avenue, $120 million
Buyer: Ramrock Real Estate
Seller: Hornig Capital Partners, Savanna, Chelsea Village Associates
Ramrock Real Estate purchased the building at Bushwick’s 95 Evergreen Avenue for $38.7 million and bought the land under the building for $81 million. The building used to house the Schlitz Brewery, but Savanna and Hornig Capital Partners repurposed it into office space, putting $30 million worth of renovations into the property. The property was originally built in 1950, and Savanna and Hornig will continue to control the building via a long-term lease.

4. 670 Pacific Street, $69.2 million
Buyer: Red Apple Group
Seller: Read Property Group
John Catsimatidis’ Red Apple Group bought this newly developed Brooklyn apartment building in Prospect Heights for $69.2 million from Robert Wolf’s Read Property Group. The building is located close to the Barclays Center, and it stands eight stories tall with 86 units. Catsimatidis purchased the property in a 1031 exchange using proceeds from his $65.2 million sale of Gristedes’ former corporate headquarters on Manhattan’s west side. He later received a $49.5 million loan on the property from M&T Bank, replacing a 2014 mortgage on the site from KeyBank for $25.3 million.

5. 1-37 12th Street, approximately $65 million
Buyer: Two Trees
Seller: Joyland Management and Meral Property Group
Two Trees purchased this Gowanus site for about $65 million from Joyland Management and Meral Property Group, who had purchased the property in 2016 for $35 million. The Pathmark site at 1-37 12th Street includes a 70,000-square-foot building and a 100,000-square-foot parking lot, and tenants include Big J’s and Retro Fitness. It is located in an Industrial Business Zone, which limits its usage to either commercial or industrial purposes.

6. 640 Columbia Street, approximately $47.5 million
Buyer: DH Property Holdings LLC, Goldman Sachs
Seller: 601W Companies
Dov Hertz’s DH Property Holdings partnered with Goldman Sachs to purchase this four-acre development site in Red Hook next to the neighborhood’s IKEA store. They plan to build an e-commerce distribution center on the site that spans 350,000 square feet. Former owner 601W Companies had purchased the site in 2012 for $21 million and hoped to sell it for $50 million.

7. 404-428 Carroll Street, $47.5 million
Buyer: The Domain Companies
Seller: Property Markets Group
Domain Companies purchased this Gowanus property from Property Markets Group for $47.5 million. It currently houses an industrial building spanning about 65,000 square feet and is zoned to accommodate about 130,000 square feet of commercial development. Domain also bought a nearby site in Gowanus at 545 Sackett Street in December, and company principal Matthew Schwartz has said his company thinks the pending rezoning will let them build a bigger project.

8. 71 West Street, $46 million
Buyer: Unknown
Seller: Pearl Realty Management
An unknown buyer purchased this industrial Greenpoint property from Pearl Realty Management for $46 million. It was built in 1931 and stands five stories tall. The buyer plans to demolish the building and convert it into a mixed-use project.

9. 442 Grand Street, approximately $43 million
Buyer: Bronstein Properties
Seller: Babaev Group LLC
Bronstein Properties bought 442 Grand Street in Williamsburg for about $43 million from Babaev Group. The residential property was built in 2012 and spans 754,386 square feet with 57 units. It includes street retail as well and was previously sold in November 2012 for $4.2 million.

10. 45 Woodruff Avenue, n/a
Buyer: Clipper Equity
Seller: Chetrit Group
Chetrit Group sold 45 Woodruff Avenue in Flatbush to Clipper Equity in March, although Chetrit retained 50 percent of its interest in the property. The exact price is not confirmed, but it is expected to be more than $40 million. The building, also known as 125 Parkside, was built in 2015 and contains 131 units across eight stories.

An earlier version of this story identified HAP Investments as the buyer of 71 West Street based on information from Real Capital Analytics, but a representative for HAP said they are not involved with the deal. The story has been updated to reflect this.