Topline/Bottomline: Don't Forget About Transfer Taxes
Brooklyn industrial real estate | Every month: one notable sale, one notable listing, what came up with clients this month, and someting fun in the borough
Sale of the Month: 275 Front Street, Vinegar Hill
Price: $5,780,000
SF: 11,389
$/SF: $507
Notes: 10,575 SF ground level with 814 SF of mezz space. 16’ -18’ clear. The buyer is associated with a plumbing supply business.
My Take: In most cities, this warehouse would be considered obsolete. It sits in a heavily residential neighborhood, on a cobblestone street, with a Citi Bike station directly across from the drive-in door…Yet it traded for over $500/SF!
Why? Two Reasons. First, exceptional truck access to Manhattan via the Manhattan Bridge and the BQE. Second, this warehouse is a prime candidate for a residential variance at some point.
What Came Up with Clients This Month: Don’t Forget About Transfer Taxes
I had two conversations this past month with owners considering selling, and both were caught off guard by how much the city and state take in transfer taxes. Here is the example we walked through:
Property: $6M warehouse
NY State Transfer Tax (.65%): $39,000
NYC Transfer Tax (2.625%): $157,500
My general guidance when calculating your net proceeds is to budget for 8-10% of in selling costs. This depends on the deal size but covers transfer taxes, attorney fees, and broker fees.
As always, verify with your accountant!
On the Market: 275 Russell Street, Greenpoint
2-story building: 6,000 SF on ground floor, 3,033 SF on 2nd Floor
15’ clear height
Two curb cuts with three drive-in doors
Move-in condition
400 Amps
Asking: 3.95M or $437 per SF
In the Borough: Brooklyn Half Marathon
19 People from our NYC Matthews office participated in the Brooklyn Half Marathon this month. Celebrated after at Radegast in Williamsburg with a few steins! Competition, cold beer, and a beautiful day in Brooklyn — what else does one need?
Bobby Lawrence is a Vice President at Matthews Real Estate Investment Services, where he helps clients buy and sell industrial buildings, land, and development sites in Brooklyn and Queens. The views here are his own and don’t reflect those of Matthews.
Bobby Lawrence
Bobby.lawrence@matthews.com
(908) 616-5799
