425 McDonald Avenue

INVESTMENT-GRADE MUNICIPAL CREDIT | 87% LEASED TO THE NYC DEPARTMENT OF EDUCATION

The NYC Department of Education (43,900 SF) recently extended its lease through January 2037, paying $37 per square foot with 7.4% escalations starting in year 6. Rated Aa2/AA by major credit agencies, the DOE covers 100% of real estate tax increases, providing investors with bond-like income from one of the nation's most creditworthy institutional tenants.

SCALE & SCARCITY IN HIGH-TRAFFIC CORRIDOR

Positioned at McDonald and Church Avenues in one of Brooklyn's busiest retail corridors, this portfolio offers rare scale in a supply-constrained market. The properties sit adjacent to the 52-acre McDonald Park and near Park Slope's vibrant retail scene, anchored by national tenants including Walgreens, Webster Bank, and Dunkin Donuts.

EMBEDDED GROWTH & NEAR-TERM OPPORTUNITY

Built-in rent escalations across all tenants deliver embedded growth and inflation protection. T-Mobile (3,000 SF) pays $40 per square foot with 10% escalations every 5 years, while Nibur Realty (2,000 SF) features 2% annual increases. Both tenants reimburse significant portions of real estate tax increases above their respective base years.

EXCEPTIONAL TRANSIT & HIGHWAY CONNECTIVITY

Located steps from the Church Avenue F and G trains, the properties offer 20-minute access to Downtown Brooklyn and 35 minutes to Midtown Manhattan. Proximity to Ocean Parkway provides direct vehicular connections to the Prospect Expressway and Hugh L. Carey Tunnel, ensuring exceptional connectivity throughout the New York metropolitan area.