170 Second Avenue

We are excited to announce the successful sale of 170 2nd Avenue in Gowanus, Brooklyn for just under $5.8M, or $411 per SF. This three-story, 14,000 SF building was designed in 1908 and had a storied history with notable tenants. Some of these tenants include the Brooklyn Asphalt Company, Montauk Paint Factory, and most recently the late Mardig Kachian – a renowned sculptor and real estate trailblazer.

 

Challenges

What makes this property so special – its curb appeal and historical charm – is also what made it challenging to sell. The largest buyer pool for industrially zoned properties is typically users looking to operate their business out of the space. However, this building presented two unique obstacles: 1) The building was landmarked in 2019 meaning you would need Landmarks Preservation Committee approval to change anything to the façade, making the necessary changes for heavy loading improbable. 2) The 2nd and 3rd floors were useless to most industrial users.

 

Action

Recognizing these hurdles, we focused on targeting creative end-users. We leveraged top-notch marketing materials, conducted direct outreach to artists and galleries, utilized third-party marketing platforms, and collaborated with buy-side brokers.

 

Result

Our efforts resulted in 31 tours attracting a range of buyers— including nightclubs, artists, galleries, and architectural firms. After receiving 17 offers, we awarded the property to a well-capitalized artist whose offer was 25% higher than our average offer. It’s bittersweet that I won’t be touting this beauty again, but incredibly fulfilling to have been part of its next chapter as Gowanus transforms into a vibrant artistic and cultural hub. Feel free to reach out if you’d like to discuss this deal in more detail.