National Real Estate Investor
May 9, 2012
NEW YORK—Naftali Group, in a joint venture with AEW Capital Management, has purchased a development site located at 95 Third Avenue in Brooklyn for approximately $6.7 million. The site, comprised of three contiguous, vacant lots at the corner of Third Avenue and Bergen Street in the Boerum Hill neighborhood, offers 15,000 sq. ft. of space. Naftali Group’s plans for the lots include the construction of an 85-unit rental building.
Priced at $122 per sq. ft., CPEX’s development and conversion team, consisting of Managing Partner Brian T. Leary, Managing Director Sean R. Kelly, Esq., Associate Cengiz Sendogdular and Associate Matthew J. Dzbanek represented the seller, Goldport Properties, in this transaction. The team also procured the purchaser.
“With the 421a tax abatement expiring within the Geographic Exclusion Areas, there is huge demand for development sites with approved plans that can be completed prior to the deadline,” said Kelly. “This site hit the market just as lenders began competing for construction loans for projects in good neighborhoods. Because this is one of the only sites in Boerum Hill, one of Brooklyn’s best neighborhoods, which had approved plans with 421a, we received more than a dozen offers shortly after going to the market.”
According to Kelly, residential rents in new buildings nearby this parcel range from the high $40s to low $50s.