Gilbane Development has purchased a large mixed-use development site in Brooklyn’s Sheepshead Bay neighborhood, acquiring 2185 Coyle St. following a recently completed rezoning. The property, which totals 96,000 square feet of land, offers 408,400 buildable square feet and is described as being well positioned for a substantial affordable housing project. The transaction underscores the emerging development potential in this part of Brooklyn as zoning changes open the door to higher-density residential uses.
Ariel Property Advisors arranged the $37-million sale on behalf of the seller, a joint venture between AAG Management and ABS Partners. The Ariel team on the assignment included founding partners Victor Sozio and Michael A. Tortorici, partner Sean R. Kelly, president and founder Shimon Shkury, and director Remi Mandell. Their mandate was to market and execute the sale of the recently rezoned development site, which ultimately traded to Gilbane Development.
The property’s new zoning framework is central to its investment thesis, as it unlocks the ability to pursue a large-scale affordable housing development on a sizable Brooklyn parcel. With more than 400,000 buildable square feet available, the site represents a significant opportunity to add income-restricted housing and associated mixed-use components in a neighborhood setting rather than a traditional high-density core. The scale gives the buyer flexibility in programming, design and phasing, subject to future plans and approvals.
Commentary from Ariel highlights how the rezoning has reshaped the value and potential of the site. Sozio noted that the zoning change created a meaningful opportunity to introduce new affordable housing in Sheepshead Bay, and that the combination of scale and development capacity made the property particularly attractive to the buyer. The statement reflects how legislative and planning actions can rapidly reposition a property’s role within the local housing pipeline.
While specific plans by Gilbane Development were not disclosed, the closing of this transaction adds another large development site to the pipeline of potential affordable housing in Brooklyn. The deal also illustrates the role of investment sales intermediaries in connecting joint-venture ownership groups seeking to exit repositioned assets with active developers focused on delivering new housing supply in established neighborhoods.
