Weekly Real Estate News
Summary
Gilbane Development acquired a recently rezoned 96,000-square-foot Brooklyn parcel for $37 million. Ariel Property Advisors confirms 408,400 square feet of potential zoning floor area; the proposed affordable-housing unit count, budget and schedule are not disclosed.
Gilbane Development has acquired a 96,000-square-foot development site in Brooklyn’s Sheepshead Bay neighborhood for $37 million, giving the company control of a recently rezoned parcel that could support more than 400,000 square feet of construction.
The transaction at 2185 Coyle Street was arranged by Ariel Property Advisors, whose current transaction records list the site as sold for $37 million. The brokerage describes 408,400 square feet of zoning floor area across a property bounded by Coyle Street, Bragg Street and Avenue V. Gilbane intends to pursue affordable housing, according to a transaction report published October 21.
The seller was a venture between AAG Management and ABS Partners, according to the brokerage account. Ariel’s team included Victor Sozio, Michael A. Tortorici, Sean R. Kelly, Shimon Shkury and Remi Mandell. The firm lists the closing in its October transaction activity; an independently recorded deed was not available for this report.
The $37 million consideration equates to about $91 per square foot of the site’s stated buildable floor area, or about $385 per square foot of land. Both figures are calculated from the brokerage’s disclosed dimensions and sale price. They are land-acquisition metrics, not projected apartment sale prices or construction costs.
Rezoning expands the site’s potential
Ariel says the property was recently rezoned to R6A/R7D/C2-4 and brought into a Mandatory Inclusionary Housing area under Option 1. The reported blended floor-area ratio of 4.26 broadly reconciles with 408,400 buildable square feet on 96,000 square feet of land.
Those zoning figures establish a development envelope, subject to applicable approvals and design rules. They do not mean that 408,400 square feet of commercial space will be built. The buyer’s intended affordable-housing program has not been accompanied by a published apartment count, affordability schedule, construction budget or start date.
The distinction matters because a large site purchase is only an early step toward delivering housing. Financing, regulatory approvals and the final unit mix will determine how much of the permitted floor area becomes apartments and at what rent levels.
Gilbane has other affordable-housing projects underway in New York. The company and its partners recently broke ground on the $175 million first phase of 1920 Turnbull in the Bronx, a separate development planned to include 228 apartments, according to industry transaction reporting. That project should not be conflated with the still-unspecified Coyle Street proposal.
The acquisition comes as New York City struggles to match housing demand with new supply. WRE recently reported that city listings reached a four-year high even as contracts softened and rents rose. Those citywide measures do not establish demand or feasible rents for a future Sheepshead Bay development, but they show why new supply remains closely watched.
The immediate transaction is verifiable as a land purchase: a named buyer, named seller, reported price and disclosed development capacity. The eventual affordable-housing output remains a proposal. A building application, approved financing plan or formal Gilbane development announcement would provide the next concrete milestone.
| Measure | Reported amount |
|---|---|
| Purchase price | $37 million |
| Land area | 96,000 sq. ft. |
| Buildable zoning floor area | 408,400 sq. ft. |
| Implied land cost per buildable sq. ft. | Approximately $91 |
| Planned homes | Not disclosed |
Sources: Ariel Property Advisors’ transaction listing and October 21 transaction reporting. Cost per square foot is calculated by WRE News from the disclosed figures.
