Residential property in Downtown Brooklyn for sale

NEW YORK, September 21 2021 - JLL Capital Markets announced today that it is marketing 22 Chapel St., a 180-unit rental residential property with 421a / Affordable NY tax benefits in a Qualified Opportunity in Downtown Brooklyn, New York.

JLL is marketing the property on behalf of the developer, Delshah Capital, LLC, and partner START Treatment & Recovery Centers, Inc. The project will offer strong initial cash flow on lease-up and a substantial 421a / Affordable NY tax benefit that will significantly offset property taxes for the next 35 years.

22 Chapel St. benefits by its location within a unique Qualified Opportunity Zone that possesses both exceptional demographics and superior commute times to Lower and Midtown Manhattan. With first TCO expected in the fourth quarter of 2021, the property can be delivered to an opportunity fund investor prior to TCO issuance, delivering the full benefits of the Opportunity Zone investment without the traditional development risk. The project is slated for completion in the first quarter of 2022.

Located on the southwest corner of Chapel Street and Flatbush Avenues in Downtown Brooklyn, 22 Chapel St. will offer 125 free-market rental units and 55 affordable units, with 1,639 square feet of retail space, a 12,383-square-foot community facility and 88 parking spaces. Units will consist predominantly of studios, one-bedroom and two-bedroom units.

Amenities at the property will include a high-end fitness center, communal rooftop, public and private terraces, bicycle and basement storage, attended parking garage, social lounge/library, coworking space, multi-purpose room with kitchen, yoga room, children’s playroom and in-unit washers and dryers.

22 Chapel St. has extraordinary access to mass transit, with a total of eight subway stations serviced by 10 different subway lines within a half-mile radius of the property. Nearby stations include the York Street F subway station, the Jay St – MetroTech N-R-W subway station, the High Street – Brooklyn Bridge A-C subway station and the Borough Hall 4-5 and 2-3 subway stations, providing access to both Lower and Midtown Manhattan in fewer than 15 minutes. The property is also well-positioned for vehicle access with proximity to the Brooklyn Queens Expressway and Brooklyn and Manhattan Bridges; it is less than a mile walk to the Dumbo/BBP Pier 1 Ferry Station.

The JLL Capital Markets team managing the transaction includes Chairman-NY Investment Sales Bob Knakal; Vice Chairman Stephen Palmese; Managing Directors Hall Oster, Jeffrey Julien, Rob Hinckley and Ethan Stanton; Vice President Patrick Madigan; and Analyst Braedon Gait. Senior Managing Director Max Herzog and Managing Director Mark Fisher are consulting on financing.

“22 Chapel St. is a great opportunity to acquire an Affordable NY tower at the intersection of DUMBO, Brooklyn Heights, Fort Greene and Downtown Brooklyn,” Oster said. “The rapid recovery in the rental market over the past 10 to 12 months will drive leasing demand and future rent growth.”

“The property is a rare offering for Opportunity Zone investors seeking a fully amenitized, luxury rental asset with a 35-year tax abatement without development risk,” Palmese added.

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 sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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