Brooklyn developer starts spending $860M windfall

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Fresh off an $860 million deal to sell his Brooklyn
apartment portfolio, developer Joseph Brunner is already spending his earnings.

Brunner, who runs Bruman Realty with partner Abe Mandel, has acquired an old Goodwill warehouse in Queens (pictured top) where he plans to build a new 18-story condo building.

Transwestern Real Estate Services (TRS) just announced it represented
Goodwill Industries of Greater NY and Northern NJ Inc. in the $14.4 million
sale of 26-25 Fourth St. in Astoria, Queens. Stephen Powers, Lindsay Ornstein
and Jake Cinti provided investment sales and consulting services to Goodwill
NYNJ.

Currently the site of a single-story, 31,000 s/f warehouse
that served as a distribution center for Goodwill NYNJ, the location is
adjacent to Goodwill Terrace, a 200-unit affordable housing building that
Goodwill NYNJ sold to Jonathan Rose Companies in late 2019 for $35 million.

“The sale of this development site concludes a major
disposition of two assets for Goodwill, the proceeds of which will allow
Goodwill to further invest in strengthening its programs throughout New York
and New Jersey,” said Powers, who leads Transwestern’s national Nonprofit
Advisory Services group. “We are thrilled to have been able to help the social services
agency bolster its financial strength at this critical time.”

Yimby reported in September that plans had already been filed by Brunner’s Fourth Development Holdings LLC for a 204 ft. tall development of 288,907 s/f, with 239,383 s/f designated for residential space and 37,656 s/f for community facility space on the site at 26-25 Fourth St. The building will have 165 residences and the concrete-based structure with  a cellar, two sub-cellars, a 30 ft. long rear yard, and 101 enclosed parking spaces. J Frankl Architects is listed as the architect of record.

Over the summer, Brunner and Mandel’s Bruman Realty entered into contract to sell a 14-building portfolio of rental buildings in Brooklyn to Manhattan-based Dalan Management in partnership with investment firm, KKR & Co Inc.

260 Gold Street rendering.

The portfolio comprises of 14 residential rental buildings including
260 Gold Street in Downtown Brooklyn, a new 13 story building with 286 apartments.
Bloomberg reported the contract price is $860 million, although neither firm
has commented and the deal is yet to close.

The portfolio consists of buildings constructed in recent
years under the city’s 421a tax abatement program. It spans 1.5 million square
feet and includes roughly 1,275 residential rental units.

Transwestern’s Nonprofit Advisory Services group has
completed three transactions for Goodwill NYNJ in the past year. In addition to
the sales of 26-25 Fourth St. and Goodwill Terrace, the firm represented
Goodwill NYNJ in its 30,800 s/f lease renewal of the full third floor of 25 Elm
Place in Brooklyn in June 2020. Goodwill NYNJ provides training, placement,
on-the-job coaching, and retention services from its Brooklyn location.

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