2390 McDonald Avenue, Brooklyn, NY, 11223, US

2390 McDonald Avenue

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis to arrange for the sale of 2390 McDonald Avenue (the “Property” or “Site”), a premier development site located in the Gravesend neighborhood of Brooklyn, New York. The Site has a 20,252 SF footprint and is zoned C4-4L (R7A Equivalent), with the ability to build up to 101,463 ZFA of qualifying residential development. Conveniently situated at the intersection of McDonald Avenue & Village Road South, this corner location offers developers a unique opportunity to build a transformative project in a growing Brooklyn submarket. The Site is currently occupied by 15,612 SF office / commercial building.

Situated in the growing submarket of Gravesend, this property offers an opportunity to acquire a site with significant scale in a high barrier to entry market. The site’s ~+100k ZFA development potential, coupled with its proximity to mass transportation, positions it perfectly as a versatile residential development. The Site offers exceptional accessibility, this strategically situated property benefits from a diverse array of nearby transit options, including the N and F subway lines. The Avenue U MTA F train is one block and a 2-minute walk from the Property, ensuring comprehensive connectivity throughout the City's major hubs.

The Site’s proximity to local amenities, parks, and cultural attractions make it highly attractive to young professionals and families driving the area’s rental demand, aligning perfectly with Brooklyn’s projected population growth and long term residential needs. Furthermore, the potential benefits of the 485-X Tax Abatement and the City of Yes programs are expected to allow for increased housing density and improved development efficiency, further amplifying the site’s potential in this rapidly developing neighborhood and positioning 2390 McDonald as a promising opportunity for investors.

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Attributes

Land area gross

1,881 m²

Zoning

C4-4L

Building area net

1,450 m²

Media

Investment Highlights

Premier Development Opportunity

2390 McDonald Avenue offers developers a transformative opportunity in the heart of Gravesend, Brooklyn. The sites ~20,000 square foot lot is zoned C4-4L which allows for a 5.01 FAR under the new UAP / City of Yes program, providing for ~101k zoning floor area (ZFA) of mixed-use development. The Property’s prime position in a growing Brooklyn submarket, coupled with its positioning as being a corner lot, renders it appealing opportunity for a residential development project.

Capitalizing on Brooklyn’s Rental Demand

Brooklyn’s rental market has seen significant growth, with median rents increasing by approximately 10% year-over-year as of 2024. In Gravesend, the overall rental vacancy rate was a very low 1.6% in 2022 (According to the NYU Furman Center). This Property, situated near major transportation hubs, Coney Island, the beach & waterfront, and favorable zoning, make it well-positioned to attract young professionals and families driving the area’s rental demand. With Brooklyn’s population projected to grow by 5% over the next five years, this development opportunity aligns with the borough’s long term residential needs.

485-X / City of Yes

The Site will be benefit from both the 485-X Tax Abatement and City of Yes programs. City of Yes allows buildings to add at least 20% more housing, if the additional units are affordable to households earning 60% of the Area Median Income. Height allowances and parking waivers are also approved through the City of Yes which will decrease development costs and improve the overall efficiency of new developments.

Supply Constrained Market

The Gravesend sub-market has a high barrier to entry for projects with scale due to the nature of the zoning and the dearth of available sites in the market. Since 2020, there have only been 2 projects larger than 50-units delivered or under construction in Gravesend.