[Hypothalamus]

The Real Deal:

Slate, Adam America to develop $100M Park Slope rental
Partners bet big on family-friendly area with 535 Fourth Ave. ground lease deal

April 28, 2014 03:20PM
By Hiten Samtani


From left: David Schwartz, 535 Fourth Avenue, Martin Nussbaum and Dvir Cohen Hoshen

Adam America Real Estate Group, Slate Property Group and AEW Capital Management executed the long-term ground lease at a Park Slope development site on Fourth Avenue, The Real Deal has learned. The trio will develop a $100 million mixed-use residential and retail property with 141 rental apartments at the site, which allows for more than 118,000 buildable square feet and has 200 feet of retail frontage.

The partners paid close to the asking price of $10 per buildable square foot, or about $1.18 million in annual rent, for the site, located at 535 Fourth Avenue between 14th and 15th streets. A CPEX Real Estate team led by Sean Kelly and Matt Dzbanek brokered the transaction. A source familiar with the deal said the 99-year lease’s net present value was about $25 million.

“It’s a rare situation that you’re in between two amazing neighborhoods [Park Slope and Gowanus] with the subway right there,” said Slate principal David Schwartz. Aufgang Architects is designing the project, which will contain units ranging from studios to three-bedroom apartments with rents likely starting at around $2,000 per month, Schwartz said.

He also noted the avenue’s retail potential, saying that any retailers eyeing a large footprint in the area would look to set up shop there.

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