ariel property advisors presents gowanus: status...

gowanus:status pending

ariel property advisors presents

ariel property advisors | 212.544.9500 | arielpa.com | 2

neighborhood Report | gowanus


BRooklyn sales team:

Mark Spinelli212.544.9500 ext. 35

[email protected]

Daniel Tropp212.544.9500 ext. [email protected]

Jonathan Berman212.544.9500 ext. 20

[email protected]

Nathan Singer212.544.9500 ext. [email protected]

analyst:

Jason Pappas212.544.9500 ext. [email protected]

Compiled By:


3 | ariel property advisors | 212.544.9500 | arielpa.com

For most of gowanus’ history, the neighbor-hood was known for its notoriously dirty canal and large inventory of industrial buildings. nes-tled between two prime residential neighbor-hoods, Carroll gardens and park slope, gowa-nus has in recent years become the object of a speculative boom which has been fueled by a number of factors: a Federal and local effort to clean up the gowanus Canal, the historical suc-cess of williamsburg and dumbo, and a wide belief that a residential rezoning is imminent.

while hope remains that a zoning change will allow many of the existing buildings to be re-placed by large-scale residential developments, gowanus continues to evolve nevertheless. industrial buildings have been converted into event spaces, destination-style restaurants, and trendy sporting clubs. additionally, entrepre-neurs have found gowanus to be a desirable home for their new business ventures in what some have dubbed the “innovation economy”.

over the last several years, a number of com-munity groups have formed in an effort to shape policy decisions that will help define the character of this transitional neighborhood. However, based on the significant amount of investment capital that has been flowing into the area, it is clear that the market is not wait-ing on policy decisions to continue its ongoing transition.

IntroductIon

3 | ariel property advisors 212.544.9500 | arielpa.com



2010 $500m 2022Year declared a superfund site projected cost of cleanup expected Year of completion

Gowanus canal cleanupin march 2010, the gowanus canal was declared a superfund site by the environmental protection agency. in 2013, a $500 million cleanup plan was proposed by the epa and is projected to be completed by 2022. Real estate investors looking at the area are banking on this cleanup timeline in the hopes of generating continued appeal to residents and businesses alike.

delays are possible due to a recent conflict between the epa and new york City as to where a new tank will be placed.

2017

2018

2019

2020

2021

2022

target area #2 Middle Canal: 3rd street to 9th street

target area #1Upper Canal: Butler street to 3rd street

target area #3 Lower Canal: 9th street to 21st street

constructIon of remedy and dredGInG

completIon of pHysIcal cleanup

operatIons and maIntenance


5 | ariel property advisors | 212.544.9500 | arielpa.com 5 | ariel property advisors | 212.544.9500 | arielpa.com



proposed rezonInG In 2009the rezoning design allows for mixed uses and promotes ground floor

commercial use. plans are delayed due to canal superfund site declaration.

square feet of offIce space comInG to Brooklynexpected to be located in redeveloped industrial space, Gowanus is an ideal

location due to the current building stock, which is over 50% industrial.2.5 million

2000-2011 Gowanus saw a 44% Increase In numBer of BusInesses

Higher than Brooklyn and nyc as a whole200=Brooklyn

150=NYC

31%

9%

439=Gowanus 44%

mostly made up of small startup BusInesses

Increased business presence has created a need for residential housing in the area.

evolvInG land use

residential

public facilities / Institutions

parks / open space

commercial

Industrial/vacant land

transportation / utility

automotive



Game-cHanGInG developments

66-80 3rd streetlIvwrksignificance: former industrial space repurposed and occupied by a startup company could be a sign of things to come.o repurposed the 90k square foot industrial building into office spaceo sold by lIvwrk to samson management for $73 million in 2015o stabilized tenancy, most notably with the tech startup Genius

345 carroll streetsterlInG equItIessignificance: In an area unknown for condominium buildings, this development appears to be a success.o located on the boarder of Gowanus and carroll Gardenso 32-unit luxury condo building commanding an average of $1,300/square footo 75% of units are under contract with expected completion in early 2016

363-365 Bond streetlIGHtstonesignificance: new large-scale residential buildings coming to the area.o purchased in 2013 for a total of $25.9 milliono 700-unit development across 650,000 square feeto portion of project sold to atlantic realty development in 2015o rents expected to range from $2,500 for studios to $5,500 for two bedrooms



three lines serve increase in ridership most used line

24,000 12% F,Gpeople dailY from 2013 to 2014 at 9th street station

transportatIonsubway stations

R

F G

R

G

R

F

F

R

R

R

R

GF

Union St

Bergen St

7 Av

Grand Army Plaza

Atlantic Av --Pacific St

4 Av - 9 St

7 Av

4 Av - 9 St

Prospect Av

15 StProspect Park

Prospect Park

25 St

Atlantic Av

Court St

DeKalb Av

Bergen

Carrloll St

Smith 9 Sts

Nevins St

Lafayette Av

Fulton St

F G

F

LIRR FLATBUSH AV

BROO

KLYN BATTERY TUNNEL

BQE

VAN

BRUN

T ST

VAN BRUNT ST

RICHARDS ST

DWIGHT ST

OTS

EGO

ST

COLU

MBI

A ST

COUR

T ST

CLIN

TON

ST

SMIT

H ST

DIKEMAN ST

UNOIN ST

UNOIN ST

LORRAINE ST

W 9 ST

9 ST

9 ST

10 ST

20 ST

20 ST

19 ST

22 ST

24 ST

26 ST

28 ST

32 ST

33 ST

10 ST

3 ST

5 AV

4 AV

PROSP

ECT P

KW

PROSPECT EXPWY

7 AV

6 AV

6 AV

7 AV

3 AV

2 AV

BERGEN ST

FULTON ST

FLATBUSH AV

DEKALB AV

MYRTLE AV

10 AV

8 AV

PROSPECT PKSW

8 AV

12 ST

14 ST

15 ST

15 ST

GARNET ST

HAMILTO

N ST

BOWNE ST

IMLA

Y ST

SACKET ST

CARROLL ST

2 PL

2 AV

3 AV

4 PL

COUR

T ST

SMIT

H STHOYT

ST

BOND ST

BERGEN ST

ATLANTIC AV

ATLANTIC AV

NEVIN

S ST

JORALEMON ST

PARK AV

NAVY ST

VAND

ERBILT AV

BROOKLYNCRUISE

TERMINAL

BOATHOUSE

BANDSHELL

TENNISHOUSE

PICNICHOUSE

BROOKLYNPUBLICLIBRARY

FORTGREENE

PARK

ZOO

LIU

PROSPECTPARK

GOWANUS

subway lines F, g & R run around the outskirts of the neighborhood with only the F & g running across the neighborhood at the 9th street station.



aveRage $/sF industRial

aveRage $/BsF development

aveRage $/sF multiFamily walk-up Buildings

prIcInG trendscomparing Gowanus to williamsburg

2011 2012 2013 2014 2015

$400

$300

$200

$100

$0

2011 2012 2013 2014 2015

$500

$400

$300

$200

$100

2010 2011 2012 2013 2014 2015

$500

$400

$300

$200

$100


gowanus williamsburg


13 | ariel property advisors | 212.544.9500 | arielpa.com 13 | ariel property advisors | 212.544.9500 | arielpa.com



proGress on Gowanus canal cleanup

developers have been investing heavily in the neighborhood with the ex-pectation that the canal will continue to be cleaned. However, there have been recent indications that delays could be possible which would most likely create uncertainty among those infusing capital into the area.

rezonInG and cHanGe In land use

Gowanus continues to see a large transition in land use from industrial to more commercial and office uses. However, any future rezoning will most likely result in more residential and mixed-use development which would satisfy a general scarcity in housing options citywide, but could also impact the existing culture that has emerged in Gowanus.

contInued Interest from BusInesses

as neighborhoods like sunset park and the navy yard evolve in their own right, they will serve as competition for young start-up capital searching for the right neighborhood in which to invest. Gowanus’ value may be impacted by this new supply of viable options for businesses in the in-novation economy.

Gowanus outlook

gowanus is undoubtedly undergoing a major positive transfor-mation. with countless projects emerging that will change the overall landscape, interest in the neighborhood is not showing any signs of waning.

multifamily and industrial building values are already compa-rable to established neighborhoods such as williamsburg and greenpoint. likewise, land values have continued to trend up-wards which demonstrates sustained confidence by investors and developers. key factors that could impact the continued growth include:

Continued growth in gowanus is expected, however the type of growth will be determined greatly by the above three fac-tors.

15 | ariel property advisors 212.544.9500 | arielpa.com

the information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. we have no reason to doubt its accuracy but we do not guaran-tee the accuracy of any information provided herein. as an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. vacancy factors used herein are an arbi-trary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. the value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. the prospective buyer should carefully verify each item of income, and all other information contained herein.

arielpa.com122 east 42nd street, suite 1015, new york ny 10168

p. 212.544.9500 f. 212.544.9501

BRooklyn sales team:

Mark Spinelli212.544.9500 ext. 35

[email protected]

Daniel Tropp212.544.9500 ext. [email protected]

Jonathan Berman212.544.9500 ext. 20

[email protected]

Nathan Singer212.544.9500 ext. [email protected]

analyst:

Jason Pappas212.544.9500 ext. [email protected]

Compiled By:

ariel property advisors presents gowanus: status...

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