Fourth Avenue development site hits the market for $9 million

Another potential development site on Fourth Avenue, the dividing line between the Park Slope and Gowanus neighborhoods, has hit the market, asking $9 million, The Real Deal has learned. The assemblage — a combination of a three-story, 14-unit multifamily building and two industrial sites — is at the southeast corner of Garfield Place and Fourth Avenue.

The site is zoned for residential and could either be redeveloped, or a buyer could “build around,” the existing multifamily structure, Ofer Cohen of TerraCRG, which is exclusively marketing the property, told The Real Deal.

The corner site, which has an irregular lot, is located at 265- 271 Fourth Avenue.

The strip, which emerged as an epicenter of residential development after the 2003 rezoning, also saw a number of stalled projects during the recession. This year, as Brooklyn’s commercial market has been revived, Cohen said, Fourth Avenue has seen many trades.

Down the street, at 202 8th Street, JDS Development Group’s 51-unit rental building is expected to draw rents of more than $50 per square foot. Rents at the Iconic Group’s Aria, at 150 Fourth Avenue, hit an average of $50 per square foot earlier this year, according to Streeteasy.com.

Just last week Brownstoner reported that a new development has begun to rise at 548 Fourth Avenue at the corner of 15th Street, which will be nine stories and 15 units, according to filings with the Department of Buildings. The Whole Foods that is slated to rise at Third Avenue and 3rd Street has added to the cache of the neighborhood, whose proximity to upscale areas bolstered its value, while the lingering presence of industrial buildings has tempered its transition. That could be changing fast, however.

The commercial market in 2012 has been Brooklyn’s best since 2007, Cohen said, and this site represents the type of available opportunity remaining in the neighborhood, which has quickly shifted from a grittier industrial strip to a hotbed of residential activity. “During the recession there were stalled sites, [but] they all sold last year and now anyone who wants to take advantage of the zoning would have to sort of assemble a combination of existing buildings,” Cohen said, noting that the site is not “shovel ready.” Instead, “it’s a long-term opportunity,” he said.

The asking price represents a cost of $142 per buildable square foot, representatives for TerraCRG said. The total buildable square footage under current zoning is 63,454.

The sellers, two local investors, decided the time was right based on “aggressive pricing,” elsewhere on the avenue, Cohen said.