Madison Capital snatches up Red Hook industrial sites for $45M

Court Street sites offer 320K buildable sf

688 and 702 Court Street, Brooklyn with Madison Capital managing partner Richard Wagman (Google Maps, Madison Capital)
688 and 702 Court Street, Brooklyn with Madison Capital managing partner Richard Wagman (Google Maps, Madison Capital)

Real estate investment firm Madison Capital acquired two adjacent industrial lots in Red Hook for $45 million.

The seller of the combined 160,000-square-foot sites at 688 and 702 Court Street was Pearl Realty’s Jack Guttman, according to property records. The parcels are zoned for industrial and manufacturing, with the ability to build nearly 320,000 square feet. PincusCo first reported the deal.

With the acquisition, Madison Capital — which also owns Liberty Bklyn in Sunset Park — is joining the industrial rush along the Red Hook shore.

Joe Sitt’s Thor Equities is building a 312,000-square-foot warehouse at 280 Richards Street, and Dov Hertz’s DH Property Holdings is constructing a 350,000-square-foot, three-story last-mile distribution center at 640 Columbia Street. Amazon has reportedly committed to lease most, if not all, of these two warehouses. The influx of new warehouses and distribution centers, however, has residents in the small waterfront neighborhood concerned about traffic and overdevelopment.

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Guttman acquired the Court Street parcels in 2013 for $10.2 million. His firm Pearl Realty is also in contract to sell a Hunts Point site in the Bronx to Andrew Chung’s Innovo Property Group, which is planning to create a 340,000-square-foot warehouse facility on the 9-acre lot. Guttman did not return an email message seeking comment.

David Junik of Pinnacle Realty

David Junik of Pinnacle Realty

David Junik of Pinnacle Realty represented both Madison Capital and Guttman in the deal. He declined to comment.

Madison Capital did not immediately respond to a request for comment.