970 Franklin Avenue, Brooklyn, NY, 11225, US

970 Franklin Avenue

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis to arrange the sale of 970 Franklin Avenue (the “Property” or “Site”), a premier development site located in Crown Heights, Brooklyn. With a 51,778 SF footprint and the ability to build up to 289,957 ZFA, the Site offers tremendous tax savings, as it is vested under the 421a tax exemption program (Option F) and sits in an Opportunity Zone. The lapsed, and recently extended, 421a program is significantly more accretive than the current 485-X tax exemption program as Option F offers 30% of units at 110% AMI as compared to the 485-X (150+ units) at 25% at 60% AMI. Furthermore, the 421a vesting significantly decreases construction costs compared to the wage requirements under the 485-x tax abatement (specifically for buildings over 150 units). The Site is also designated as Mandatory Inclusionary Housing (Workforce Housing). Situated on the west side of Franklin Avenue, between Montgomery Street and Sullivan Place, the Property is just one block from Prospect Park and offers developers an exceptional canvas with substantial upside potential in an undersupplied and growing submarket.

970 Franklin Avenue's proximity to local amenities, parks, and cultural attractions makes it highly attractive to young professionals and families, driving the area’s rental demand and aligning perfectly with Brooklyn’s projected population growth and long-term residential needs positioning the Site as a promising opportunity for investors.

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Attributes

Land area gross

4,810 m²

Building area gross

26,938 m²

Zoning

C2-4 / R7D

Media

Investment Highlights

Vested 421a Opportunity

The Option F vesting allows developers to realize substantial tax savings when compared to the current 485-X program. The key difference being that Option F offers 30% of units at 110% AMI as compared to the 485-X tax exemption for over 150 units that has a requirement of 25% of units at 60% AMI. Additionally, there are no 421a construction wages which translates to substantial cost savings when compared to the 485-X exemption.

Significant Private Investment in Crown Heights

Crown Heights is experiencing substantial private investment as demonstrated by the recently completed development at 54 Crown Street & 141 Montgomery Street (569 units) as well as the development at 960 Franklin Avenue which is currently under construction (301 units) and adjacent to 970 Franklin Avenue. 970 Franklin Avenue is ideally situated to capitalize on these tailwinds, with the potential to develop ~350 units across 289,957 ZFA.

Strong Submarket Fundamentals

Crown Heights features a healthy and growing rental market, evidenced by an average vacancy rate of just 1% since 2015 and reflected in the rising number of new lease signings, which have nearly doubled for the third consecutive month. Forecasts suggest that the increasingly affluent renter demographic will likely sustain rising rents in the submarket, with an average expected household income growth of 14% through 2028.

Transit Oriented Location

Ideally situated in Crown Heights, the property boasts a prime location with excellent access to transportation. The Franklin Avenue – Eastern Parkway Station (2, 3, 4, 5 trains) is just steps away (2-minute walk, 0.1 miles). To the south, the Prospect Park Station is a short 5-minute walk away (0.3 miles) providing access to the B, S, & Q Trains.