JLL arranges ground lease for Coney Island development site
Owners of Gargiulo’s Restaurant ground-leased parking lot located directly across the street; site offers up to 325,000 square feet of development potential
NEW YORK, January 8, 2019 — JLL Capital Markets, on behalf of the Russo family, owners of Gargiulo’s Restaurant, has structured a 99-year ground lease on a near full-block development site at 1517 Surf Avenue on Coney Island in Brooklyn, N.Y. The location serves as an ancillary parking lot for Gargiulo’s Restaurant, which is located directly across the street from the lot. The site, which comprises the parking lot and not the famous restaurant, was leased to LCOR Inc., a major national developer.
The development opportunity at 1517 Surf Avenue is zoned R7A and R7X and lies within the Coney Island Special District, allowing for up to approximately 325,000 total zonable square feet. Permitted uses within the Coney Island Special District include residential, commercial and ground-floor retail. The location is uniquely positioned within a short walk of the Coney Island-Stillwell Avenue subway station, providing convenient access to Manhattan in less than 40 minutes, and directly across the street from the Coney Island amusement park.
Gargiulo’s Restaurant, located at 2911 West 15th Street on Coney Island, was established in 1907 by the Gargiulo family. In April 1965, the Russo brothers (Michael, Victor and Nino) embraced Coney Island as their new home and acquired the restaurant from the Gargiulo family. Gargiulo’s Restaurant has been, and will continue to be, an anchor within the Coney Island community.
“Our family has witnessed the resurgence of Coney Island during the past few years,” said Michael Russo. “This was a great opportunity to help expedite the transformation.”
“Gargiulo’s is an institution within this community,’” said Anthony Tortora, Senior Vice President, with LCOR. “We are currently in the initial planning stages and anticipate a mixed-income residential development, with up to 30% of the apartments designated as affordable. LCOR looks forward to being part of the future of Coney Island.”
The JLL Capital Markets professionals overseeing the transaction include Senior Director Steven Rutman and Managing Directors Rob Hinckley and Jeffrey Julien.
“This represents the largest and most subway-proximate residential development site remaining along the rapidly transforming Surf Avenue,” Rutman said. “Rezoned in the past decade, Coney Island is transitioning from a seasonal tourist destination to a year-round residential waterfront enclave. The unique zoning structure of Coney Island will ensure views of the Atlantic Ocean are protected in perpetuity.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
LCOR is a build-to-core, transit-oriented, multi-family development platform focused in major east coast urban markets. Over its 40-year history, the development firm has applied its comprehensive expertise and fully integrated investment management and development strategy to more than 300 large-scale mixed-use projects. lcor.com