Ariel Property Advisors arranges $9 million sale of 21,600 s/f development site

Brooklyn, NY Ariel Property Advisors arranged the sale of two adjacent lots totaling 21,600 s/f at 544-550 Union St. in Gowanus for $9 million, or $417 per s/f, marking the firm’s third development site transaction in the neighborhood this year.

An Ariel team led by Sean Kelly, Esq., partner, Stephen Vorvolakos, director, and Nicole Daniggelis, associate director, represented the seller of the site, which holds three structures housing seven commercial and residential units on two 40-ft. wide lots.

“The sale of 544-550 Union Street is our team’s third development sale in Gowanus since the beginning of the year with three more pending,” Kelly said. 

“This type of activity demonstrates the strong market response to the area’s rezoning and government incentives, which are effectively encouraging the creation of new housing.”

Kelly and his team have secured the four highest price-per-buildable sales in the Gowanus neighborhood, cementing the firm’s active and leading role in the area’s development market.

Earlier this year, Kelly and his team sold 224 Third Ave., a 59,995 s/f site, which includes 6,000 s/f of air rights, for $17.8 million ($296 s/f), and 284 Fourth Ave., a 33,261 s/f residential development site that traded for $7.85 million ($236 s/f). In previous years, Kelly sold a mixed-use development site offering 101,852 s/f at 125 Third St. in Gowanus for $29.5 million ($290 s/f), and a development site with a 142,500 s/f zoning floor area at 450 Union St. for $40.65 million ($285 s/f).

Approved in November 2021, the Gowanus rezoning is expected to create approximately 8,500 units of housing, of which about 3,000 will be permanently affordable. The rezoning and tax incentives have fueled a surge in high-rise residential and mixed-use projects that are transforming the neighborhood.