Daten is currently seeking commercial and residential projects that posses a value-added component through lease-up, repositioning or development. The asset must possess one or a combination of intrinsics such as excellent location, discount to replacement cost, contain development rights, favorable assumable financing or stable cash-flow. While Daten focuses on the New York metropolitan market, it will consider projects in other markets on a case-by-case basis. The ideal acquisition size is from $3m-$20m, depending on the availability of financing. Equity is typically provided by Daten and a combination of private investment funds.

Property Acquisition And Development History

600 HARRISON ST, HOBOKEN

PROJECT OVERVIEW

Daten Group acquired the Property on April 8, 2014 in an all-cash transaction. Occupying the entire western block front on Harrison Street between 6th and 7th Streets, the Property is a 14,410 square foot triangular lot that will make host to a 68,000 (approximate) square foot building including cellar. Daten   plans to construct a 7-story residential building project with 43,225 net square footage and approximately 505 square feet of retail. The Property will offer approximately 46 units that feature modern and sleek finishes and an abundant amenities package including a virtual doorman for enhanced security, spacious layouts, onsite parking, outdoor recreation space, and in-room laundry room in every unit.

The project schedule calls for construction slated to begin in Q2, 2015. Construction will take approximately 18 months with a targeted completion of Q4 2016.

 

575 4th Avenue

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PROJECT OVERVIEW

575 4th Avenue, LLC  has acquired several vacant parcels located at 573, 575, 577, 579 & 581 4th Avenue and 189-193, 195 Prospect Avenue in Brooklyn, New York. The acquisition closed on November 12, 2015 with all initial equity funds provided by principals of The Daten Group, LLC.

The Property is comprised of seven irregularly shaped lots located along the southeast corner of Fourth Avenue just north of Prospect Place and directly across the street from the R train line. 575 4th Avenue will be developed as a 11-story mixed use multifamily condominium with +/- 6,500 SF retail component. The approximately 22,000 SF site will make host to a +/- 100,000 SF building containing 70 apartments and 48 parking spots.

The project schedule calls for construction to begin in Q3 2016 and should take approximately 20 months with a targeted completion of Q2 2018. We estimate another nine months to close on sales for all the units.

840 Fulton Street, Brooklyn

PROJECT OVERVIEW

The Property is a triangular lot that occupies the southeast corner on Fulton Street at Vanderbilt Avenue. The property is also 1 block from the A,C train lines, allowing for easy commutes into Manhattan. The Property will be designed as a 7 storied mixed use multifamily rental project with both a community facility and a +/- 5,600 SF retail component. The 8,354 SF site has undergone a zone lot merger with the neighbor to increase the buildable SF to 43,080 Square Feet including cellar. The Property will have 39 rental apartments. Finishes and amenities will be on par with other luxury rental buildings in the area. The building will include such features as: common area recreation space, gym, landscaped roof deck, package room; a virtual doorman for enhanced security; bike storage; laundry room in the basement.

The project schedule calls for final site-plan approval by year-end 2014 with construction slated to begin in Q1 2015. Construction will take approximately 20 months with a targeted completion of Q3 2016. We estimate another three-six months to lease-up the units and stabilize the property.

 

72 POPLAR STREET, BROOKLYN HEIGHTS, NY

PROJECT OVERVIEW

The Daten Group acquired 72 Poplar Street in May 2011.  This 100-year old former Police Precinct is located in historic Brooklyn Heights, New York.  In June 2012, NYC Landmarks approved plans for the construction of two-additional stories on top of the existing 3-story building.  The building will be transformed into thirteen family-sized condominium apartments with detailed finishes and luxury amenities.  There will be a separate 2-story townhouse with private balconies and landscaped rear yard.

Poplar Street is a beautiful tree-lined block that has the historic Brooklyn Heights ambience down to the gas lamps.  It is also within blocks of unique shops and restaurants; some pf the best public and private schools in New York City;  public transportation with easy access to Manhattan and; trendy DUMBO and Downtown Brooklyn.

OUTCOME

Construction commenced in July 2012 with an estimated completion scheduled for the 1st Quarter 2015.

PHOTOS

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WHITE PLAINS

PROJECT OVERVIEW

In 2013, acquired three separate parcels of land in White Plains, New York.  Each property will be developed into luxury residential rental buildings.  Construction on the combined total of 104-units with one retail unit will begin in June of 2013 at a projected cost of $28 million.  The project will be developed through a joint venture with Lighthouse Enterprises, LLC, a White Plains based developer who has successfully completed several other similar buildings in the area.

The buildings will be built using modular construction combined with the onsite application of glass and stone facades.  The interiors will feature custom high quality finishes, spacious layouts, all at very competitive pricing.  The combination of locational market fundamentals, principal development expertise, and advanced construction practices will ensure a maximum return on investment.

OUTCOME

All three properties are now 100% occupied and cash flowing nicely. We closed our permanent financing with Bank United for $33 Million and were able to return the majority of our investors equity. Going forward we expect to see in excess of 15% cash on cash returns.

PHOTOS

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1462 2ND AVENUE, MANHATTAN, NY

PROJECT OVERVIEW

The Daten Group acquired 1462 2nd Avenue in February 2011.  Located on 77th and 2nd Avenue, this property is centrally located in one of New York’s most affluent neighborhoods, the Upper East Side.  The five-story walk up building was delivered with the ground floor retail vacant and eight apartment units in various states of disrepair.  Shortly after acquistion, Daten began a complicated muilt-layered renovation of the building to completely modernize the residential and retail units.

This building also has future potential as a development site with over 22,000 sq ft of developable area for commercial and residential uses.

OUTCOME

The ground floor retail has been completely renovated to include all new services, interior and storefront.  A long term lease with the trendy Brooklyn based The Meatball Shop began in January 2013.   Six of the eight residential units have been completely renovated with all new interiors and building services.  The cash-flow of the building has been significantly improved and we were able to obtain permanent financing from a local lender.

We sold the property in the 1st Qtr of 2015. We were able to sell the property at just over a 4% cap rate and more than double our initial purchase price.

PHOTOS

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1753 PARK AVENUE, MANHATTAN, N.Y.

PROJECT OVERVIEW

Daten and its joint venture partner, Blumenfeld Development Group, acquired an entire vacant block from East 121st to 122nd Street on Park Avenue in New York City through a bidding process with the NYC Economic Development Corporation.  The parcel was divided into two separate buildings of 40,000 square feet each.  The buildings are occupied with light manufacturing and office tenants.  Construction commenced in spring 2006 and was completed in fall 2008.  Construction financing was provided by Valley National Bank.

OUTCOME

1751 Park Avenue was sold to a private investor in 2007.  Daten has retained ownership of 1753 Park Avenue which, is 100% leased to three tenants with a positive net cash-flow.  The construction loan and the equity were paid back in August 2008 with the proceeds from a 10-year permanent loan provided by TD Bank.

PHOTOS

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48 LAIGHT STREET, MANHATTAN, N.Y.

PROJECT OVERVIEW

In October 2003, Daten purchased an environmentally contaminated former gas station on the corner of Hudson and Laight Street in Tribeca, New York.  Plans called for a complete and rigorous remediation of all contaminated soil followed by new construction of a 25,000 square foot six-story high-end commercial and residential loft building.  The project was also under auspices of the New York City Landmark Preservation Commission and required extensive approvals before development could begin.  Valley National Bank provided $7.35m in construction financing with a total project budget of $11m.

OUTCOME

The project was well received by the Landmarks Commission as “a modern rendition of a classic Tribeca loft building” and won numerous industry accolades for destinctive design.  Based on the desirable location and high level finishes, the project sold out during pre-construction with the ground floor retail being sold to Valley National Bank.  The project was completed in May 2006 with annualized cash-on-cash returns in the mid twenty percent range.

PHOTOS

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63 WEST 38TH STREET, MANHATTAN, N.Y.

PROJECT OVERVIEW

In July 2004, Daten acquired an under-performing 1920’s era office building consisting of 130,000 square feet with an additional 40,000 square feet of development rights.  Daten created a development plan that consisted of vacating the entire building through lease cancellations and buyouts to redevelop the asset as a mixed-use commercial and residential condominium.  The plan entailed sophisticated engineering to add six additional floors to the existing twelve story building.  The initial acquisition was just under $30m with a total development budget of $60m. Arbor Bank provided a $20m acquisition loan.

OUTCOME

During pre-construction phase, the ownership received numerous offers and finally agreed to sell the asset for $50m.  The sale returned cash-on-cash returns in excess of 100% during the 18 month hold period.

PHOTOS

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