10-85 Irving ("The Box Factory")
New York, NY
Brickman entered into a Joint Venture Agreement with Hornig Capital Partners to acquire the fee-simple interest in two buildings located at 10-75 Irving Avenue and 10-95 Irving Avenue in Ridgewood, Queens New York for $14.5 million ($161 per square foot) in April 2016. The asset was built in 1929 and consists of two buildings; the first is a single story industrial manufacturing warehouse totaling 24,499 remeasured net rentable square feet while the second is a two story industrial manufacturing building with a mezzanine totaling 65,837 remeasured net rentable square feet. The combined 90,336 square foot buildings are located along the border of Ridgewood, Queens and Bushwick, Brooklyn in an emerging area with limited space available to meet the demand for industrial, artistic, and flex office tenants.
The Property benefits from being located two-blocks off of the L train stop at Halsey Street. The L train is the main mode of transportation for most people coming to and from Manhattan, Williamsburg and Bushwick. The L Train has been the main driver of the rapid gentrification and growth of Bushwick as rising rents in Williamsburg and other more established Brooklyn neighborhoods along the L have pushed individuals further east along the L train where individuals can find more space and relative affordability without sacrificing convenient connectivity via the subway.
Property type: Office
Investment type: Equity
Size: 65,837 SF
Investment date: April 2016
Brickman acquired 10-85 Irving for $14.5 million or $161 per square foot, which is well-below comparable sales for similar low-rise industrial buildings in the Bushwick and greater Brooklyn/Queens area. Comparable trades of low-rise industrial buildings in the greater Bushwick area at the time of acquisition, were $205 per square foot on average. Brickman’s acquisition basis of $161 per square foot represents a 22% discount to these comparable trades.
The Partnership plans to perform significant capital improvements on 10-95 Irving to address deferred maintenance, improve curb appeal and properly position the asset to the leasing community. The improvements will include a lobby renovation, a new elevator, façade repairs, new bathrooms, mechanical and electrical upgrades, HVAC replacement and fire/life-safety repairs.