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Brooklyn Market Report
M I D - 3 RD Q U A R T E R 2 0 1 5 R E P O R T
Looking Ahead
Underutilized Upper Floor Space Revaluated
The retail market that is booming in some of the borough’s neighborhoods, is pushing values upwards of the sometimes underused space
in buildings that sits above the stores. A prime example is the recent deal between department store Macy’s and developer Tishman
Speyer which will result in a 10-story office building rising atop Macy’s Downtown Brooklyn flagship store on Fulton Street. Some sources
predicting that the recent deal will spark similar opportunity for others within the district. It has been further noted that there is currently
about 250,000 square feet of vacant upper floor space in buildings on the Fulton Mall, that in part is used for storage space that has been
maintained by the revenue generated from the much higher rent prices that the ground level retail fetches.
Downtown Brooklyn’s ongoing renaissance in recent years has reportedly added thousands of new residences, attracting hotels,
restaurants, and more national retailers — particularly on the Fulton Mall. As a result, it is anticipated that the district’s vibrancy and nontraditional building space aesthetic will be very attractive to startups as well as established technology and creative companies. Further
fueling the potential trend of the area’s growing allure is the large number of students that some sources suggest will become tomorrow’s
entrepreneurs, and will want to remain in the area where they have been educated as they work to cultivate their careers.
Although the demand for office space in Downtown Brooklyn continues to escalate; and renovations will typically raise a property’s overall
value, conversion of empty upper floor space presents some challenges:
•
Installation of additional entrances, stairwells, or an elevator would eliminate valuable retail space where rents are reportedly ranging
$250-$350 per square foot.
•
Long term dormancy of upper floor space will require extensive remodeling to meet the requirement of today’s office tenants; and the
small floor plates may not warrant the expense.
•
The building’s certificate of occupancy (C of O) will have to be changed requiring property inspections by the city’s Department of
Buildings, which could result in fines and necessary upgrades.
Sources: http://www.wsj.com/articles/brooklyns-unused-upper-floors-offer-an-emerging-market-1439777647
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Downtown Brooklyn Partnership Releases Mid-2015 Report
The report released in August by the BID revealed a continued low vacancy rate for commercial space of 3.4% out of the district’s total
17 million square feet, as increased demand grows well beyond supply. Vacancy rates have remained below 4%, fluctuating between
3.9% at the high, and 3.4% the low over the last year; creating challenges for businesses seeking space. While some fear that the lack
of office space will inhibit Downtown Brooklyn’s renaissance as it becomes a thriving central business district with a balanced mix of
commercial, residential, retail and cultural, there are developments on the horizon to help bolster commercial space needs. A total of
336,000 square feet of commercial space already began construction during the 2nd quarter, a significant increase quarter-over-quarter of
the 26,000-square-foot figure.
422 Fulton Street – Developer Tishman Speyer is planning to construct 10-stories of office space atop the Macy’s store, total squarefootage has yet to be determined.
37-53 Flatbush Avenue aka 76-92 Rockwell Place – Co-developers Quinlan Development and Building & Land Technology are planning to
reposition the 230,000-square-foot storage facility into 257,000 square feet of office and retail space.
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Dekalb Market - Renderings
Retail Activity
Dekalb Market Hall – A Promised New Gathering Place for Visitors
The 27,000-square-foot food hall that will be located on the concourse level of Downtown Brooklyn’s City Point complex will provide
food offerings from 40 vendors. Currently about 50% leased, the Dekalb Market will be operated through a 20-year lease by Local Culture
Management who is also a partner in the food hall along with Acadia Realty Trust and Washington Square Partners who are spearheading
the mixed-use project.
Expected to open next year, vendors will be comprised of a mix of established Brooklyn brands as well as start-ups. Asking rents for the
spaces that start at 150 square feet are below market at a starting figure of about $30 per square foot with a 3 to 5-year license agreement.
The current roster of vendors include Katz’s Delicatessen as an anchor tenant along with Colombian arepa eatery Arepa Lady, donut
purveyor Cuzin’s Duzin, Eight Turn Crepe, No. 6 Coffee, Forcella Pizza, Pierogi Bar, Fletcher’s Brooklyn Barbeque, bakery Pain D’Avignon,
and Steve’s Ice Cream.
The possibility of expanding the market by another 3,500 square feet to include a “farm-to-city” Foragers Market is being considered. Local
Culture Management, owned and operated by company president Anna Castellani, has current locations in both Brooklyn’s DUMBO and
Manhattan’s Chelsea neighborhoods which offer urban residents farm fresh meats, fish, eggs, produce and pantry ingredients. The market
will be joined by 2 full-scale restaurants, a grocery store, and another food and entertainment vendor that will fill the entire 60,000-squarefoot lower-level concourse space.
The City Point Project rose out of the vision of the 2004 Downtown Brooklyn Development Plan. It will be comprised of 3-adjoining
residential towers totaling 1.8 million square feet to be constructed in 3-phases. The project will feature 30,000 square feet of office space
and a 675,000-square-foot shopping center. Under the terms of the lease agreement between the development team dubbed Albee
Square Development and the city, the project must be completed by 2020.
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Retail Activity (cont’d)
Smith Street Retail Corridor Facing Ongoing Struggles
The retail corridor that runs through Boerum Hill and Carroll Gardens on the border of Cobble Hill, sometimes called BoCoCa, may have
become of victim of its own success as several restaurants have been forced to shutter. In addition, several other underlying factors has
attributed to Smith Street’s slump.
Looking ahead however, the rise and fall of the city’s neighborhoods and retail corridors is nothing new. It is an ongoing cycle of change that
in part has attributed to the city’s enduring vibrancy. The Smith Street corridor, as others in the past, will undoubtedly see another resurgence
in the future.
Restaurant and other retail business closures in recent years include:
•
The Grocery, 288 Smith Street – June 2015
•
Cahr No. 4, 196 Smith Street – July 2015
•
Burger on Smith at 209 Smith Street – 2013
•
Ceol, an Irish pub at 191 Smith Street - 2014
•
Savoia, 277 Smith Street – April 2014
•
Saul, 140 Smith Street - July 2013 (relocating to an outpost in the Brooklyn Museum on Eastern Parkway)
•
The Nut Box at 163 Smith Street – 2014
Oversaturation: Back in the 1990s when the strip was still rundown The Grocery established an outpost
that reportedly in 2004, according to restaurant review and rating company Zagat’s guide, rose to the 7th
highest-ranked restaurant throughout the city. The restaurant’s success spurred the interest of several
other eateries, ultimately creating a flourishing restaurant row which in recent years has given rise to what
some business owners and industry sources describe as an over saturation — both along Smith Street and
throughout the other nearby neighborhoods which significantly increased competition.
Rising Rents: Average asking rents along the corridor have reportedly risen to a range of $90-$130 per square
foot. Current prices are more than double — and in some instances triple the rents paid when older businesses,
such as apparel shop Brooklyn Industries at 100 Smith Street, secured their 10-year leases which are now
coming due for renewal.
National Brands: An uptick in interest by national retailers resulted in several new signings that are transitioning the corridor into what
some sources describe as the next phase of gentrification. Led by Lucky Brand Jeans, the denim retailer opened at 135 Smith Street in
2007, replacing a former bar called Vegas.
•
Intermix opened its first location in the borough at 140 Smith Street replaced restaurant Saul in 2013.
•
Anne et Valentin with outlets in Paris and SoHo recently opened an outpost for their eyewear at 200 Smith Street.
In addition, redevelopment activity is further eliminating some older establishments — exemplified by the former home of Met Food
supermarket at 197-205 Smith Street. The existing structure is being demolished to make way for a higher-end, 2-story retail development,
having been acquired in November for $18.5 million by the partnership of the Jackson Group, Aurora Capital, and ACHS Management
Court Street: Another factor that some restaurant and business owners point out as contributing to Smith Street closures is the increased
desirability of nearby Court Street. Anchor stores such as Trader Joe’s which opened at 130 Court Street in 2008; and a Barney’s Co-op
which opened just steps off Court Street in a 2-story space at 194 Atlantic Avenue in 2010, have in part triggered Smith Street’s slump.
Currently lined with numerous restaurants and retailers, Court Street offers space with reportedly larger floor plates that has attracted
several clothing retailers despite rents that rose from $35 per square foot to $200 per square foot between 2009 and 2014. Newcomers
include Rag & Bone which opened in 2014 at 160 Court Street; and Jacadi Paris which recently signed a lease for 900 square feet at 189
Court Street, paying approximately $150 per square foot.
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Lease Activity Highlights
Notable Lease Deals:
Retail
Trader Joe’s / 206 Kent Avenue aka 200-216 Kent Avenue (Williamsburg) – The grocery chain will be adding another
location in the borough as a result of the lease for 18,000 square feet announced in July. The California-based grocer
currently has an outpost which they have occupied since 2008 at 130 Court Street in the Cobble Hill neighborhood, as
well as 5 other locations spread amongst Manhattan, Queens, and Staten Island. The new store will be located about
3 blocks west of a new Whole Foods market that will be opening at 242 Bedford Avenue.
Trader Joe’s will anchor the ground level retail at the planned 45,000-square-foot mixed-use office/retail development being constructed by
Alliance Private Capital. The vacant lot acquired in 2014 for $18 million ($400 per buildable-square-foot) spans the entire block-front between
North 3rd Street and Metropolitan Avenue. Alliance recently secured $20 million in refinancing from Canada-based lender Romspen to help
fund the project’s construction.
Fairway Market / 2149 Ralph Avenue (Bergen Beach) – The grocery market chain will be opening its 2nd location
in the borough, signing a 20-year lease for the 40,000-square-foot store. Located within the Georgetown
Shopping Center, Fairway will be replacing a Waldbaum’s supermarket that currently occupies the space.
Following in a similar path of competitor Whole Foods, the new store will serve as a prototype for an atypical,
reduced footprint model offering lower cost items. In addition to the Brooklyn locations, Fairway currently has 5 Manhattan locations;
recently abandoning plans to open at store on the Far West Side at Related Companies’ Hudson Yards project.
Office
Frog / 55 Prospect Street (DUMBO) – The industrial design firm whose origins date back to 1969, has leased
a 27,000-square-foot space spread across the entire 7th floor at the former Watchtower complex now known as
DUMBO Heights. Frog will be making the parallel move next summer from its current location at 325 Hudson
Street (Hudson Square). The new space boasts 15.5-foot ceiling heights; an open layout to accommodate changing
needs; and will offer greater convenience for the majority of the company’s 80 employees that currently reside
in the borough, with expectations of increasing staff to 100 over the next few years. Renowned for creating the design language for Apple’s
Apple IIc system launched in 1984, which was recognized by Time Magazine as the “Design of the Year;” and inducted into the permanent
collection at the Whitney Museum of Art, Frog’s roster of clients has included Disney, Logitech, Sun Microsystems, SAP, and Microsoft.
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Lease Activity Highlights (cont’d)
Office (cont’d)
Time Inc. / Industry City (Sunset Park) – The media company has signed a 15-year lease for 55,000
square feet that will spread across entire floors 4-5 at one of the buildings in the complex, asking rents
reportedly range from $15 to $35 per square foot. The deal also included a 5,000-square-foot ground
level car showroom space that will be used for video work for the company’s new The DRIVE website
slated to launch this year. The new lease represents the first major media company to establish a location in the area. Time Inc. is planning
to relocate 300-plus staff from Manhattan before the end of the year, simultaneously with the company’s relocation from their current 1.2
million square-foot office at 1271 Sixth Avenue to their new 669,832-square-foot headquarters at Lower Manhattan’s 225 Liberty Street at
Brookfield Place. It was speculated by some sources that the new Lower Manhattan space, which is about half the size of their current
office, may not be able to accommodate all their Manhattan employees; prompting the company to decide to relocate staff from Technology,
Content Solutions, and Editorial Innovation departments to Brooklyn.
Milk Studios Co-Working Space / Industry City (Sunset Park) – Co-founders Mazdack Rassi and
Erez Shterlicht of media and film-production services company Milk Studios are adding a yet-to-benamed co-working space division to their mix of offerings, leasing 60,000 square feet at the complex.
Details of the deal were not released, but sources anticipate that the lease will include an option to
expand to 200,000 square feet over a designated period of time. Although the new venture will face
competition from already established firms, the company’s current creative businesses may facilitate
Studio’s entrance into the market.
Lease Deals to Watch For:
Retail
Ralph Lauren / The Mill Building, 85 North 3rd Street (Williamsburg) – The American fashion firm
will be making its debut in the borough according to circulating rumors. Although details have yet to
be released, the store will be at the base of the 6-story building that was converted to condominiums in 2008. Located at the northeast
corner of Wythe Avenue, the new outpost will be steps away from a J. Crew store at 234-236 Wythe Avenue that opened last year. Other
nearby tenants include the upcoming Whole Foods market at 240-242 Bedford Avenue that is currently under construction; and Brooklyn’s
first Apple Store which will be opening at 247 Bedford Avenue.
Office
Adidas / 118 North 11th Street (Williamsburg) – The German sports apparel and footwear company is
rumored to be considering a lease for roughly 20,000 square feet in the 4-story loft commercial building.
The company plans to utilize the space as a creative office/studio to help revitalize the brand that has lost
market share to rivals including Nike and Under Armour. The building currently houses long-term tenant Brooklyn Brewery on the ground
floor warehouse space. Owner Solomon Jacobowitz had acquired the property in 2011 for $5.093 million, abandoning earlier plans for a
residential conversion. Instead ownership opted to take advantage of the surge in tenants seeking creative space in the borough which has
established a large creative talent pool, demand pushing asking rents at the property to $70 per square foot.
NYU Polytechnic School of Engineering / Industry City (Sunset Park) – The University is planning
to set up an incubator for tech startups and other young companies in a 50,000-square-foot facility.
Applications have been submitted by the complex’ developers on behalf of the school for a needed $6.2
million grant from the NYC Economic Development Corporation (NYCEDC) to fund the outfitting of the facility, and offset the undisclosed
rent that the NYU Polytechnic will be paying for the space. To further assist with rent overhead costs, the school is considering allowing
other tenants at the complex to use the facility on a paid membership basis.
The new facility will be intended for use by mature startups that have already outgrown other incubators in the city, including 3 of NYU’s
own smaller facilities located at 137 Varick Street in Lower Manhattan; and 2 in Brooklyn at 20 Jay Street (DUMBO) and 15 Metro Tech
(Downtown Brooklyn). Similar to the co-working office spaces, the incubators allow tech startups to collaborate and refine business and
technology ideas. The Industry City facility will consist mostly of “step-out-space,” offer private offices ranging in size from 500-2,000
square feet, and include a fabrication facility with equipment including milling machines and industrial 3-D printers. To date, NYU Polytechnic
reportedly boasts a graduate roster from their incubators of 51 companies with an estimated value of $721 million.
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Lease Activity Highlights (cont’d)
Manufacturing
Koppers Chocolate / Liberty View Industrial Plaza, 850 3rd Avenue (Sunset Park) – The 3rd-generation specialty
confection-maker will be relocating their office and manufacturing facility as a result of the recently announced lease
for 50,000 square feet on a portion of the building’s 3rd floor. Koppers received tax incentives from both the city and
state as part of the expansion deal. In exchange for the creation of 27-full time jobs, $556,000 in Excelsior tax credits
was awarded by the Empire State Development Corporation. In addition, a $3,000 tax credit per employee for up to
12-years was awarded by the city through the recently renewed Relocation Employment Assistance Program (REAP); and the company will
receive discounts on its electric charges. Upon factoring in the tax incentive package, Kopper’s rent will be less than $10 per square foot
versus the average asking of $15.50-$19.50 per square foot. The company’s business is currently housed in a 6-story, 29,400-square foot
building in Manhattan’s West Village at 39 Clarkson Street which they own; and reportedly in contract for an undisclosed price to sell the
property that last traded in 1983 to a developer for probable redevelopment for residential use.
Liberty View Industrial Plaza, an 8-story, 1.24 million-square-foot building formerly known as Federal Building No. 2 that boasts 140,000-squarefoot floor plates, was acquired by Salmar Properties in 2011 from the city. The developer won the bid for the redevelopment of the building
that spans an entire block bound by 2nd- and 3rd Avenues, and 30th- and 31st Streets. Other recent activity at Liberty View Plaza includes:
Bed Bath & Beyond - A 100,000-square-foot lease earlier this year by the national retailer will be split between 4 of the company’s brands
Saks Off 5th – The discount brand of the high-end department store signed a letter of intent (LOI) in May for roughly 30,000 square
feet, that if the deal moves ahead will be the store’s Brooklyn debut.
Manufacturing Innovation Hub for Apparel, Textiles & Wearable Tech – The fashion incubator will be housed in 160,000 square feet
as a result of a $3.5 million investment by the New York City Economic Development Corporation (NYCEDC).
Makerbot / Industry City (Sunset Park) – The 3-D printer manufacturer opened their 170,000-square-foot facility
at 147 41st Street in July, expanding their footprint from the 80,000-square-foot facility they opened in 2013 to a
total of 250,000 square feet. Despite recent setbacks prompting the layoff of 100 employees, or about 20% of its
staff; and the closure of 3 retail locations, the 6-year old company which was acquired by Minneapolis, MN-based
Stratasys Ltd. for $403 million in 2013 is forging ahead. The company plans to shift focus away from consumer
direct sales to education, reportedly pursuing partnerships with schools and companies such as General Electric.
The 3-D printing concept has attracted several developers, slowly making its way into the construction industry as
exemplified by the news of some development projects in both China and the Middle East city of Dubai.
Office Project / Dubai – The staff of the technological Museum of the Future launched earlier this year
will temporarily be housed in a 3-D printed office building that will feature an open plan to accommodate
diversified uses and staff-team sizes. Assembly will be completed on-site in a process that is expected
to take a few weeks. All structural detailing and components, as well as interior furniture will be
produced using 3-D printing technology. The 2,000-square-foot project reportedly claims the title as the
first 3-D printed structure to be put to actual use; and will be completed through a partnership between
Dubai and joint venture WinSun Global.
Residential Project / China – The Shanghai-based construction firm WinSun Decoration Design
Engineering recently unveiled reportedly the world’s tallest 3-D printed building. The 5-story structure
on display at the Suzhou Industrial Park features a terra cotta brick-like exterior. The company has
already received orders for 10 of their 11,840-square-foot 3-D printed neoclassical mansions from a
Taiwanese-based real estate firm. In addition, a single-story, 650-square-foot affordable unit that utilizes
recycled construction waste and cement at a fabrication cost of $4,800 per unit has attracted interest
from countries seeking affordable housing alternatives.
Museum of Future - Rendering
5-Story Housing Project - Rendering
Sources: http://www.bloomberg.com/news/articles/2015-07-09/time-inc-moving-300-workers-to-brooklyn-s-industry-city • http://www.thedrive.com/
http://www.gizmag.com/worlds-first-3d-printed-office-dubai/38253/
http://www.theguardian.com/cities/2015/jan/31/chinese-firm-creates-worlds-tallest-3d-printed-building
http://www.citylab.com/housing/2015/01/china-built-giant-apartment-with-3d-printer/384948/
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Sale Activity Highlights
Recently Sold
1 Hanson Place (Downtown Brooklyn) – The partnership of real estate investment firm Madison Realty Capital and private equity investment
firm Sigular Guff have reportedly acquired the 41,400-square-foot retail condominium for $20.4 million from Canyon Johnson Urban Funds.
Located at the base of the landmarked former Williamsburgh Savings Bank Tower which was converted to residential use in 2006 and
rebranded One Hanson Place, the retail unit is comprised of about 16,330 square feet of ground level space, 6,203 square feet of mezzanine
space, and 16,688 square feet of both usable and storage cellar space. In addition, the unit boasts 309-feet of wraparound frontage
along Hanson Place and Ashland Place, expansive 63-foot ceiling heights, ornate architectural features, and 40-foot sculptured windows
throughout the ground and mezzanine levels. Recently used by events company Skylight for events including the popular Brooklyn Flea.
New ownership plans to reposition and modernize the currently vacant space in an effort to attract either a single tenant or multiple longterm tenants. The building is located adjacent to Atlantic Center Mall which is reportedly home to high-grossing retail tenants including Old
Navy, Sleepy’s, Burlington Coat Factory, Marshall’s, and Pathmark; and nearby Atlantic Terminal transportation hub with access to 9-subway
lines and the Long Island Railroad. An announcement of the deal in April had erroneously identified the Rockfeld Group as contract vendee.
92 3rd Street aka 68-80 3rd Street (Gowanus) – Samson Management has acquired the recently restored and
repurposed 90,000-square-foot property for $73 million ($811 per square foot) from PWR Holdings, the joint
venture of LIVWRK and FirstMark Capital. The building that sat abandoned prior to PWR’s acquisition in January
2014 for $20.34 million ($226 per square foot) is now nearly 100% occupied, with about 5,000 square feet of
retail space remaining available. Current tenants Genius Media, an online knowledge base platform leased 40,135
square feet in July; and co-working space provider Cowork | rs leased 42,000 square feet in March. Owners were
reportedly not looking to sell the property that is a few blocks west of the Whole Foods market at 214 3rd Street,
but the offer provided a financially prudent exit from the project.
92 3rd Street - Rendering
Brooklyn Whale Building, 14 53rd Street (Sunset Park) – Madison Realty Capital has acquired the 7-story,
400,000-square-foot former industrial building for $82.5 million ($206 per square foot) from an entity headed
by Harry Skydell. At one time home to petroleum company Whale Oil, renovations to upgrade and repurpose
the building for creative office space use are underway, the seller having reportedly invested about $8
million to date since acquiring the property in 2011 for roughly $25.4 million ($63.50 per square foot).
14 53rd Street - Former Rendering
Madison Realty intends to further invest in capital improvements that will likely include exterior upgrades; improved internet connectivity
and electrical capacity; the conversion of floors recently used for storage into modern office space; and the possible addition of a roof deck
to attract creative as well as medical and biotech tenants. Located along the Brooklyn waterfront between Industry City and the Brooklyn
Army Terminal, the building boasts huge open floors, 17-foot ceiling heights, and 360-degree views. The acquisition marks the 2nd recent
purchase by Madison Realty, have purchased 11-31 Ryerson Street aka 256-266 Flushing Avenue (Clinton Hill) for roughly $45 million ($106
per square foot) in February with similar plans to repurpose the 215,000-square-foot warehouse to attract technology tenants.
Deal to Watch For
9-31 Dekalb Avenue (Downtown Brooklyn) – JDS Development and the Chetrit Group are reportedly in contract to purchase the 150year old former Dime Savings Bank of New York building for $90 million from JPMorgan Chase. The bank will relocate currently housed
operations to nearby 490 Fulton Street. The 68,904-square-foot landmarked building, which was introduced to the market last December,
offers prime retail potential for an upscale brand at the corner of Albee Square. The current floor-area-ratio of 12 FAR also creates the
potential to maximize the building’s envelope of up to 382,584 square feet.
More significantly, the property offers over 249,916 square feet of transferable development rights as-of-right. New ownership could utilize
the unused air rights to increase the density of a planned mixed-use project at a nearby 340-366 Flatbush Avenue Extension site, having
acquired the property that can accommodate 174,000 buildable square feet as-of-right in June for $43.5 million ($250 per buildable-squarefoot). According to previous reports, applications to demolish the existing structure were already submitted to make way for an intended
70-story, 555,734-square foot mixed-use project that is expected to reach a linear height of 775 feet; but at the time details regarding plans
to purchase additional development rights were not announced.
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Sale Activity Highlights (cont’d)
New to Market
59-73 Atlantic Avenue (Brooklyn Heights/Cobble Hill) – Owners of the 7-property portfolio have
banded together in agreement to sell the row of contiguous mixed-use buildings if an offer for
$56 million or more is received, equating to a price of $7 million per building. Each structure
rises 4-stories with a mix of residential units and ground level retail space. The majority of the
buildings range in size between 3,248-4,000 square feet and house 2-3 residential units with
the exception of 63-65 Atlantic Avenue’s 6,920-square-foot size and 16-units. The aggregate lot
size of the 7-tax lots totals approximately 12,090 square feet, with a primary zoning of R6 and
maximum floor area ratio (FAR) of 2.43.
59-73 Atlantic Avenue - Portfolio View
The only hold-out on the block is ownership of the 4-story, 5,238-square-foot mixed-use building at 75 Atlantic Avenue. Located at the
corner of Hicks Street, the building was purchased for $1.9 million ($362 per square foot) in 2013. Other recent trades within the portfolio
include the 3,800-square-foot 71 Atlantic Avenue which traded for $1.62 million ($426 per square foot) in 2008; and 59-61 Atlantic Avenue
which has a combined 6,496 square feet, traded for $4.5 million ($692 per square) in February according to city records.
If a sale of the portfolio that totals roughly 28,796 square feet is secured at the intended figure, which some sources note is well above
market even for Brooklyn Heights, the owners will benefit from prices approximately 3-times ($1,945 per square foot) what the properties
would reportedly fetch through individual sales.
The sale figure may further be justified by the portfolio’s proximity to the Cobble Hill retail corridor of Court Street which in recent years has
transitioned from predominantly mom-and-pop shops to a retail mix that now includes regional and national brands such as:
–
Trader Joe’s, 130 Court Street
–
Starbucks, 50 Court Street
–
Bareburger, 149 Court Street
–
Splendid, 142 Court Street
Other activity in the vicinity includes:
159-161 Remsen Street – The potential redevelopment site that can accommodate 45,000 buildable square feet was introduced to the
market in April for $30 million ($667 per buildable-square-foot).
153-157 Remsen Street – A planned 19-story, 79,700-square-foot residential project being co-developed by Quinlan Development and
Lonicera Partners. The assemblage was purchased in 2013 for just over $15 million ($188 per buildable-square-foot).
252-260 Atlantic Avenue – The 2-story, roughly 45,000-square-foot retail complex that a Michael’s Arts & Crafts is expected to anchor is
currently under construction.
1580 Nostrand Avenue (Flatbush) – Developer Hello Living has introduced the development
site to the market for $28 million ($161 per buildable-square-foot), apparently abandoning plans
for a residential project and opting to secure a quick profit instead. The previously planned
23-story, 173,546-square-foot residential development comprised of 153-units spread across
129,000 square feet with 45,000 square feet on 2-stories for walk-in medical offices at its
base has already received approvals from the Department of Buildings (DOB). The single-story,
31,050-square-foot property was acquired in 2014 for $13 million ($75 per buildable-squarefoot); and demolition of the existing structure was completed earlier this year. The sale offering
will result in the 3rd time the property has changed hands in recent years, having previously
traded for $4 million in 2012.
1580 Nostrand Avenue - Former Rendering
Sources: http://www.nytimes.com/2015/07/28/nyregion/monteros-tempting-offer-could-mean-the-end-for-longshoremens-bar.html
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Development Site Sales
New to Market
537-545 Sackett Street aka 265-283 Nevins Street (Gowanus) – Owner/user Glenn Schattner, president of Adams Book Company
introduced the potential development site to the market in July, hoping to fetch a sale price between $23- and $27 million. Located a few
blocks north of the Whole Foods Market that opened at 214 3rd Street on the corner of 3rd Avenue in 2013, the site can accommodate
80,000 buildable square feet. The block-through property has frontage on Sackett, Nevins, and De Graw Streets; and last traded in 1982
for an undisclosed price. Redevelopment of the existing 42,000-square foot warehouse can be for office use with a retail or creative
component. While a rezoning of properties surrounding the Gowanus Canal has been proposed to further spur development in the area,
the timeline of a possible adoption remains unclear. However developer interest has been on the rise due to the Superfund cleanup of the
canal that is currently underway.
Sales to Watch For
830 Fountain Avenue (East New York) – The Brooklyn-based entity Rector Hylan Corp. that is tied to investors Juda Rosonford and Pincus
Neiman are reportedly in contract to purchase the site that can accommodate close to 430,000 buildable square feet for about $190 million
($442 per buildable-square-foot) from Parkwill Management Corp. and SunCap Property Group. Previous plans to develop a FedEx facility
will move forward as part of the deal, the sellers having acquired the at the time vacant site just 18 months ago for $39.99 million ($93 per
buildable-square-foot)
The property will change hands for the 2nd time in just over 10-years, having been acquired by Brooklyn-based Bawabeh Realty Holdings for
$15.6 million on 2004. The company ultimately abandoned plans to build a big-box retail complex upon receiving a purchase offer, deciding
that the site located near the over 630,000-square-foot Gateway Center retail complex no longer met their investment criteria.
575-581 4th Avenue / 189-195 Prospect Avenue (Park Slope) – The Daten Group will be taking over the redevelopment of the 6-parcel site,
agreeing to pay $24 million ($300 per buildable-square-foot) to the Rabsky Group. The roughly 78,400-square-foot residential condominium
development will rise 12-stories along 4th Avenue, and 5-stories on Prospect Avenue. Upon delivery the condo will house 65-units, or about
half the 129-unit design within a similar building mass previously intended according to permit applications filed in December — Rabsky
apparently deciding to abandon the project. Demolition of the existing mixed-use structures is expected to begin this fall. The Rabsky Group
had acquired the parcels through 2-transactions, paying a total of $15.5 million in an off-market deal — $7.55 million for the 2- parcels on
Prospect Avenue in November; and $7.85 million for the 4-parcels on 4th Avenue in April.
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Development Site Sales (cont’d)
Recently Sold
1041-1047 Fulton Street (Clinton Hill) – Hudson Companies acquired the development site for $7.2
million from an undisclosed seller that abandoned plans to build a 6-story, market rate development.
A new residential development will rise on the site of a former Fairhaven Funeral Chapel that was
previously demolished; and house 39-units that will be 100% affordable housing. The project represents
the partial fulfillment of Hudson Company’s obligation to the city to construct 119-units of affordable
Brooklyn Public Library - Rendering
housing as a result of a deal made last year to redevelop the current home of the Brooklyn Public
Library at 280 Cadman Plaza West. A 2nd site is being acquired at 911-917 Atlantic Avenue that will give rise to a 2nd affordable project
to complete the developer’s obligation; and the purchase which is currently in contract is expected to closed before the end of the year.
A planned 20-story, 350,000-square-foot mixed-use project will replace the current library as a result of the deal awarded to Hudson
Companies, allowing the developer to acquire the land at 280 Cadman Plaza West for $52 million ($149 per buildable-square-foot) from
the city. Proceeds from the fee sale went to the library system to help finance much needed renovations at some of its other branches. In
exchange the developer is required to build a new library on the ground level of the project; and affordable housing units to be constructed
simultaneously at an offsite location within Community Board 2. In addition to a 21,000-square-foot library spread across the ground and
basement levels, the development will house a mix of residential units, retail, community space, and a gym for nearby St. Ann’s School.
Hudson Companies will be renting an 8,000-square-foot space nearby to temporarily house the library during construction that is expected
to break ground in 2016.
4302 4th Avenue (Sunset Park) – Yosef Streicher acquired the 14,040-square-foot former 68th Precinct Station for $6 million ($171 per
buildable-square-foot) from an undisclosed seller under the entity Sunpark LLC. The sale of the building that dates back to 1886, and has
remained vacant since 1970, also included a 5,952-square-foot stable house. Although future plans by new ownership were not revealed,
the property can accommodate 35,000 buildable square feet. Although the building’s red brick exterior is landmarked, it offers the potential
for a residential conversion.
186-190 21st Street (Sunset Park/Greenwood Heights) – Sterling Town Equities acquired the 2-parcel, 10,017-square-foot assemblage for
$6 million in an all-cash transaction from the entity 186-190 St. LLC. Located a few blocks north of Greenwood Cemetery, new ownership
plans to demolish the existing 2-story commercial building to make way for a residential condominium project. The area in the southern
section of the borough has seen a slow uptick in development activity as a result of the Brooklyn Borough President’s Office Spark Fourth
Avenue Vision plan in 2009. The plan intended to create a grand “Brooklyn Boulevard” by transforming the truck route that runs from the
Downtown Brooklyn intersection of Flatbush Avenue, Ashland Place and Hanson Place to the Verrazano-Narrows Bridge in Fort Hamilton.
Residential developer interest along the 4th Avenue corridor was further sparked in 2011 as a result of an amended Special 4th Avenue
Enhanced Commercial District which required “a broad range of engaging, pedestrian-friendly commercial and community facility uses
on the ground floor of buildings fronting 4th Avenue.”
Sources: http://www.brownstoner.com/blog/2015/06/marvel-to-design-hudsons-affordable-housing-in-clinton-hill/
http://www.nyc.gov/html/dcp/html/fourth/fourth3.shtml
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Development Projects on the Horizon
90 Sands Street (DUMBO) – The 30-story, 363,100-square-foot Jehovah’s Witness residential
hotel that currently houses 508 rooms with kitchens will become a new PUBLIC Hotel upon
ownership being transferred to developers Kushner Companies and RFR Realty in 2017. A term
sheet was signed in June and while plans are currently a work-in-progress, the high-end hotel
brand controlled by Manhattan-based Ian Schrager Company is anticipated to encompass a mix
of hotel forms including an extended-stay component. In addition an observatory-like restaurant
will be featured at the top. The project reportedly has the potential to become a nearly 600-key
hotel with an additional 60,000-100,000 square feet of food-and-beverage services and meeting
facilities. The building is part of the former 6-building, 1.2 million-square-foot Watchtower
DUMBO Heights - Rendering
complex which was rebranded DUMBO Heights. The portfolio was acquired by Kushner and
RFR, along with institutional investment firm Invesco from the Watchtower Bible and Tract Society of New York for $375 million in 2013.
Ongoing efforts to reposition the buildings into a high-tech office complex in collaboration with LIVWRK Holdings, has attracted e-commerce
site ETSY which leased 200,000 square feet as anchor tenant at 117 Adams Street; co-working space provider WeWork who signed a lease
for the entire 90,000-square-foot at 81 Prospect Street, potentially taking another 72,000 square feet at 77 Sands Street; and more recently
industrial design firm Frog leased 27,000 square feet at 55 Sands Street.
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Projects on the Horizon (cont’d)
70 Atlantic Avenue formerly 339-357 Hicks Street (Cobble Hill) – East Village-based NYU
Langone has submitted applications to the NYS Department of Health for approvals to
open a proposed 5-story, 160,000-square-foot facility on the site of the former Long Island
College Hospital (LICH) that was shuttered last year. In addition, project plans were almost
simultaneously submitted to the city’s Department of Buildings (DOB) now that the sale
of LICH for $240 million to Fortis Property Group has been finalized. A requirement of the
acquisition from the State University of New York stipulated that NYU Langone, as Fortis’
medical partner, return certain services to the community. NYU will be investing roughly $180
million towards the new healthcare facility’s development.
70 Atlantic Avenue - Rendering
The $204 million project dubbed NYU Langone Ambulatory Care Clinic will allow the hospital to relocate from their current nearby
facility at 83 Amity Street that was opened last October and has become inadequate. Demolition applications for the existing 12-story,
354,047-square-foot structure have been filed to make way for the new development, but approvals by the DOB are pending. The new
facility will include an ambulatory care center, freestanding emergency department, and 105,832-square-foot community facility space.
Pending approvals, the project is expected to be completed before the end of 2017 or in early 2018.
The sale and redevelopment of the LICH site has reportedly met with opposition from the Cobble Hill Community, the 20-building complex
offers as-of-right potential to construct 3-buildings — 14-stories, 19-stories, and 44-stories with parks, retail and community space. While
the majority of Cobble Hill is landmarked with a 50-foot height limitation, the LICH site is not. However, the developer reportedly intends to
go through the Uniform Land Use Review Procedure (ULURP) to roughly double the allowable square footage for residential development
to allow for 4-towers — 16-stories, 20-stories, 30-stories, and 40-stories to house 820-units. Approximately 600 market rate units will
spread across 892,000 square feet, with 220 below-market rate units distributed across 220,000 square feet. In addition, preliminary plans
call for a 27,580-square-foot park, retail, pubic school, 7-new townhouses, and the new healthcare center to be run by NYU Langone. A
collaboration of the developer, local residents, and the city council has given rise to a rezoning proposal that would result in the 40-story
tower being relocated away from the center of the neighborhood, and building a lower 16-story tower in its place.
Kingswood Center, 1630 East 15th Street (Midwood) – The partnership led by Infinity Real
Estate has proposed a vertical expansion of the existing 3-story, 160,000-square-foot mixeduse building the company acquired in 2014 for roughly $67.486 million. The intended alteration
would add a 4th- and 5th floor totaling 60,000 square feet. The building was developed by
Alan V. Rose Realty Company in 2007, and is currently 100% leased to a mix of retail tenants
including TJ Maxx and NY Sports Club on the ground floor; and medical tenants including the
Visiting Nurse Service of New York (VNS) and the New York Eye & Ear Infirmary of Mount Sinai
on the upper 2-floors. At the time of the building’s construction, zoning in the area changed
allowing increased density; but due to occupancy date requirements of VNS, time did not allow
1630 East 15th Street - Rendering
the project to take advantage of the heightened allowable density. However in anticipation of a
potential addition, the original developer erected the building in a way to facilitate future vertical expansion.
Sources: http://nyulangone.org/press-releases/nyu-langone-medical-center-unveils-new-nyu-langone-cobble-hill-emergency-department
http://ny.curbed.com/archives/2015/07/27/as_lich_sells_doctor_calls_planned_facilities_inadequate.php
http://ny.curbed.com/archives/2015/05/19/finally_a_look_at_lichs_hated_residential_conversion.php
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Pier 6 - Rendering
One Brooklyn Bridge Park
Empire Stores - Rendering
Pierhouse - Rendering
John Street - Rendering
Brooklyn Bridge Park - Development Update
Pier 6, Brooklyn Bridge Park (Brooklyn Heights) – The development team of RAL Development Services and Oliver’s Realty Group have
been awarded the project to design and build 2-residential towers pending final approvals by the Brooklyn Bridge Corporation’s (BBP) board.
The not-for-profit entity is responsible for the planning, construction, maintenance and operation of 85-acre, self-sustaining Brooklyn Bridge
Park. The project which stirred opposition from area residents recently reached a settlement in a lawsuit that sought to block the towers’
construction, BBP agreeing to forfeit 3-stories in each building thereby reducing their heights by 30-feet. The project is expected to generate
$118 million for the park over the term of the 94-year lease; and although the loss in residential space reportedly cost both the developers
and the BBP tens of millions of dollars, it was balanced out by improved market conditions.
The request for proposal (RFP) that was released last May announced the planned development of the remaining sites within the park.
Located across from Pier 6 at Atlantic Avenue and Furman Street, the RFP attracted 14 respondents. The towers will stand 29- and 14-stories,
housing 192 condominiums and 147 rental apartments. The rental units will be divided between 30 market-rate and the remaining 117-units
considered affordable for moderate- or middle-income households. In addition, ground floor retail, public restrooms, and space for a pre-k
school will be incorporated into the structures’ design.
The decade long effort to solidify the park’s long-term financial stability has in addition to the Pier 6 project prompted several other
developments including:
One Brooklyn Bridge Park (OBBP) - The 440-unit residential condominium building with 80,000 square feet of retail space that was
completed in 2008, was a conversion of a 1,000,000+ square foot warehouse building.
Pier 1 development site includes two parcels that are located at the Old Fulton Street entrance to the Park. In 2012, BBP selected a joint
venture of Starwood Capital and Toll Brothers City Living to develop the Pier 1 sites dubbed Pierhouse. Their development will include a
200-room Starwood hotel, approximately 100 residential units, 16,000 square feet of restaurant space, 2,000 square feet of retail space,
a 6,000 square-foot fitness center, and 300 parking spaces. Construction began in spring 2013 and is expected to be completed by winter
2015-2016.
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Brooklyn Bridge Park (cont’d)
Empire Stores are a complex of seven contiguous 4- and 5-story historic warehouses containing approximately 350,000 square feet. In
the summer of 2013, a team led by Midtown Equities was designated to redevelop Empire Stores. Upon completion the redevelopment
will feature nearly 80,000 square feet of restaurant, retail, event space, and 300,000 square feet of office space. West Elm will anchor the
building by leasing both office and retail space. Construction began in early 2014 and is expected to be completed in early 2016.
John Street development site is located at the Park’s northern edge in the future John Street section of the Park. In July 2013, BBP selected
a joint venture of Alloy Development and Monadnock Development to design and develop the site. The residential development will include
approximately 50 residential units spread across a total of 96,000 square feet, 2,600 square feet of ground floor retail, and 1,750 square
feet of cultural space. The cultural space will be occupied by the first annex of the Brooklyn Children’s Museum. Based in Crown Heights,
Brooklyn the museum will provide exhibitions, cultural and environmental educational programming for children and families. Construction
began in summer 2014 and is expected to be completed by mid-2016.
Despite some road blocks that have confronted the development of the Brooklyn Bridge Park, significant progress has been made. In addition
to building construction, the former barren waterfront area that is roughly bound by Jay Street and Atlantic Avenue to the north and south;
and Furman Street and the East River to the east and west, has evolved into a beautiful park area for both passive and active recreation.
The 85-acre sustainable waterfront park comprised of 6-piers, upland, and water areas stretches 1.3 miles along the East River shoreline.
July brought the announcement of 2-new sections that will open in August. The Pier 6 meadow on the south end of the park will offer park
goers a passive recreational area featuring a lawn area surrounded by several plantings designed to bloom throughout the spring and fall.
The new northern section by contrast has a more industrial aesthetic with preserved train tracks embedded into the plaza that serves as
the park’s northern entrance. A more active setting, in addition to an outpost for the Brooklyn Children’s Museum at 1 John Street, the new
northern section will include the Environmental Education Center at 99 Plymouth Street; and the new home of the St. Ann’s Warehouse,
a Brooklyn performing arts organization that is slated to open this fall in the historic Tobacco Warehouse as a result of a $31 million campaign
that has transformed the building into a year-round performing arts facility.
St.Ann’s Warehouse- Rendering
Sources: http://www.brooklynbridgepark.org/pages/project-development • http://www.empire.state.ny.us/Subsidiaries_Projects/BBPDC.html
http://www.nytimes.com/2015/07/27/nyregion/brooklyn-bridge-park-opening-new-vistas.html?_r=0
http://brooklynbridgepark.s3.amazonaws.com/s/519/Design%20and%20Phasing%20Presentation.pdf
http://stannswarehouse.org/tobacco-warehouse/
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Development Project Plans in Progress
70 Henry Street (Brooklyn Heights) – Co-developers JMH Development and Madison Estates received
Landmarks Preservation Commission approvals in June to redevelop the 1896 single-story structure
into a 5-story residential building. Home to Brooklyn Heights Cinema for over 40-years, the existing
structure’s base will be restored and house a café on the ground level with 5-residential units spread
across newly added floors 2-5. The property was acquired last November for $7.5 million.
146 Pierrepont Street / 181-183 Montague Street aka 140 Pierrepont Street (Brooklyn Heights)
– Jonathan Rose Companies filed permit applications in July for the construction of a 19-story,
70 Henry Street - Rendering
132,715-square-foot mixed-use building that will house 68 residential units and 6,230 square feet of
ground level retail. The 2-parcel assemblage was acquired between 2014 and 2015 for a combined total
of $42.25 million ($318 per buildable-square-foot). Demolition permits were approved in June for the existing 5-story, 6,755-square-foot
residential structure at 146 Pierrepont which was acquired in January for $5.75 million. Demolition permits have yet to be filed for the latter
block-through site which was previously acquired in 2014 for $36.5 million.
247 Water Street (DUMBO) – Landlord Jack and Joshua Guttman have reportedly filed alteration permit applications to reposition the
existing structure into a mixed-used office and manufacturing building. The 35,000-square-foot building has a linear height of 60-feet and will
house 2,700 square feet of manufacturing space on the ground level with the upper 4-floors intended for office use. Repositioning efforts
by ownership of the long-time vacant property have hit several roadblocks. Applications to legalize the apartments in the illegally converted
loft building were denied in early 2000; followed by a failed attempt in 2013 to gain approvals for a new 7-story hotel that would partially
preserve the existing structure.
504-524 Myrtle Avenue (Clinton Hill) – Silverstone Properties, the management arm of Madison Realty
Capital recently revised approved plans for a 6-story rental project. Updated designs reveal the addition
of a 7th floor and a rooftop level. While construction can begin for floors 1-6, an additional application
submission will be required to receive plan amendment approvals from the Department of Buildings
(DOB). The new building will replace the previously demolished Pratt Stations Post Office; and now
appears to cantilever over the pedestrian walkway on one-side. Originally about 20,755 square feet of
retail space on 2-levels was to sit beneath 92-units; but that number has most likely changed as a result
of the added stories. Silverstone acquired the property in 2012 for $5.56 million.
Sources: http://www.dnainfo.com/new-york/20150624/clinton-hill/new-myrtle-ave-building-may-rise-2-stories-higher-than-expected
504-524 Myrtle Avenue - Rendering
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Project Plans in Progress (cont’d)
555 Waverly Avenue (Clinton Hill) – Madison Realty Capital and USAA Real Estate Company filed permit
applications in November for the construction of the 8-story, 122,000-square-foot rental project that
now appears to have an increased density of 145,000 square feet. The 80/20 rental project will house
190-units, 7,000 square feet of ground level retail space, and 80 parking spaces as required by current
zoning. Located 1-block from the Clinton-Washington C-subway station, the 4-property assemblage was
acquired for a total of $31 million ($214 per buildable-square-foot). Initially 539-557 Waverly Avenue, a
3-story, 43,350-square-foot bagel factory that was formerly home to long-time tenant Beigel’s Bakery,
was acquired for $23.5 million from the Brooklyn-based entity Broadway Equities R.E. LLC reportedly
555 Waverly Avenue - Rendering
headed by Martin Gordon. An additional $7.5 million was paid to purchase 3-additional neighboring
sites — 849, 851- and 853 Atlantic Avenue totaling about 10,263 square feet plus development rights. It was previously reported that the
co-developers plan to invest another $57.5 million for the project’s construction.
730 Bergen Street / 313 Saint Marks Avenue (Prospect Heights) – Eastern
Capital is constructing 2 very different residential rental buildings on the irregularly
shaped 31,000-square-foot parcel that was acquired in 2012 for $5.75 million
($94 per buildable-square-foot). The larger development facing Saint Marks
will be 4-stories totaling 56,139 square feet to house 75 units with 38 parking
spaces below grade as required by current zoning. The smaller development
facing Bergen Street will deliver a 4-story townhouse totaling 4,900 square that
313 Saint Marks Avenue / 730 Bergen Street - Renderings
will house 3-duplex units. Shared amenities will include a gym, roof deck, movie
screening room, and a courtyard. The project is already underway and expected to be completed in 2016.
731 and 733 Bergen Street (Prospect Heights) – Owner Benny Shlaff filed permit applications in July for a pair of 4-story residential
buildings on one of the last vacant lots along the corridor. The new buildings will total 10,546 square feet, adding a total of 15-units to the
area. Decisions to split the units between 2-developments may have been made in order to avoid the required 7-parking spaces for a single,
15-unit project. According to city records, the 2-parcels last traded under an LLC in 2008 for $1.115 million ($53 per buildable-square-foot).
Other projects along the street include 937 Bergen Street, a planned 8-story, 100,629-square-foot mixed-used project being developed by
Crow Hill Development; and 735-737 Bergen Street, a 5-story, 12,277-square-foot residential project being developed by Brookland Capital.
615 Dean Street (Prospect Heights) – Greenland Forest City Ratner Partners, the partnership of Chinabased Greenland USA and Forest City Ratner Companies filed permit applications in June for another
tower to rise at the Pacific Park complex formerly known as Atlantic Yards. The 316,750-square-foot
development will house 244 residential units and 4,000 square feet of commercial space. Other activity
at the multi-building complex includes:
•
535 Carlton Avenue – The 100% affordable, 298-unit residential development began construction
earlier this year and will be the first residential tower to rise.
Pacific Park - Rendering
•
550 Vanderbilt Avenue – Sales for the 275-unit market-rate condominium are expected to launch this summer, having already receive
approvals from the New York Attorney General’s office. A $200 million construction loan was secured in June from lender HSBC
Holdings for the development that has already broken ground and expected to deliver in 2016.
•
30 Sixth Avenue – Plans for the 100% affordable, 305-unit residential development were filed in February.
•
B2 BKLYN, 461 Dean Street – The 32-story story modular development that has hit several road blocks is reportedly restarting construction.
470 4th Avenue aka 237 11th Street (Gowanus) – Co-developers Adam America, Slater Property Group and
Naveh Shuster are constructing the 12-story, 84,454-square-foot mixed-use development. Upon its delivery,
the new building will add 105 residential units, 5,259 square feet of commercial space, and a 200-square-foot
community facility to the neighborhood. Located a block from the 4th Avenue F, G, and R subway station, the
12,690-square-foot site was acquired in 2014 for $20 million ($237 per buildable-square-foot). Initial permits for
foundation work were approved last year, and demolition of existing structures has already been completed to
make way for the new development that is anticipated to deliver in 2017.
470 4th Avenue - Rendering
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Project Plans in Progress (cont’d)
191 and 195 Clarkson Avenue (Prospect-Lefferts Gardens) – New York-based developer Astral Weeks filed permit
applications for the construction of a 7-story, roughly 19,965-square-foot residential development that will house
29-units, 11 parking spaces, and recreation space. Located between Bedford- and Rogers Avenues, the 2-parcel
assemblage was acquired in June for a combined total of $2.425 million ($123 per buildable-square-foot).
227 Clarkson Avenue (Prospect-Lefferts Gardens) – Brooklyn-based developer Brookland Capital filed permit
applications in June for the construction of a 6-story, 10,000-square-foot residential condominium development
that will house 14-units. The former 4,584-square-foot parking lot was acquired earlier this year for $1.35 million
($135 per buildable-square-foot) from the entity NYPA Realty LLC; representing a 10% reduction from the original
$1.5 million asking price.
318-350 Clarkson Avenue (Prospect-Lefferts Gardens) – Union Square-based Hudson Companies filed building
applications in August for Phase II of the multi-building project that will add a combined total of 420 residential units
to the neighborhood. The 8-story, 205,748-square-foot development will house 250-units plus a 5,700-square-foot
commercial component on the ground floor. A total of 150-parking spaces will be created as required
by current zoning, despite the site being located about 2-blocks from both 2- and 5-subway stations
and a new Select Bus on Nostrand Avenue.
Hudson Companies acquired the 4-parcel development site for $13.1 million from non-profit Health
Science Center at Brooklyn Foundation which is affiliated with SUNY Downstate Medical Center.
The assemblage was combined with other adjacent properties — 1295-1299 Nostrand Avenue and
306-310 Clarkson Avenue, a 5-parcel assemblage purchased for $10 million last year from the ESP
Group. Phase I of the project has already broken ground for the 170-units that are expected to
deliver in 2017.
191/195 Clarkson Avenue
Rendering
318-350 Clarkson Avenue - Rendering
318-326 Junius Street aka 445-455 Blake Street (Brownsville) – Williamsburg-based developer Joseph Brunner filed alteration applications
for the conversion of the 5-story, 44,663-square-foot factory into a 114-key hotel. Over the years, the building has served as home to a
boxing gym, community center, and a church, currently encumbered with reportedly 56-open violations dating back to 1993. The building
has traded twice since 2014, seized by the city over $250,000 in unpaid taxes resulting in a foreclosure sale in March 2014 for $1.505
million; followed by the more recent acquisition in February for $5.145 million ($115 per square foot). The overbuilt structure is located within
Brownsville’s Industrial Business Zone, where reportedly low-density zoning essentially caps buildings at single- or 2-stories, making the
acquisition a fairly valuable asset within the neighborhood.
225- and 227 4th Avenue (Park Slope) – Preliminary renders were released for the planned 12-story,
65,072-square-foot rental project on the vacant lot at 225 4th Avenue being developed by Midtown Westbased Greystone. Located directly in front of the Union Street R-subway station between Union and President
Streets, the new building will house 68 residential units spread across 61,572 square feet and 3,500 square
feet of ground level retail space.
The landmarked Brooklyn Lyceum building at 227 4th Avenue will be restored and converted into a single-use
commercial space, the developer abandoning earlier plans for a 2- or 3-unit luxury condominium conversion.
Work at the site will include the installation of new windows, new mechanical equipment on the roof, plus
at-grade entrances created on both 4th Avenue and President Street. Neon signs will be added, as well as
interior signage that will be visible from outside.
225 4th Avenue - Rendering
Recent press brought the announcement that Blink Fitness had secured a lease for the entire 16,700-square-foot
building, the developer receiving approvals from the Landmarks Preservation Commission (LPC) for the conversion in
July. A subsidiary of fitness company Equinox, the 15-year deal marks the discount brand’s 4th Brooklyn outpost, with
plans to open up to another 9 over the next 12-18 months.
Both properties were acquired in January for a total of $21.1 million, paying $13.5 million for 225 4th Avenue; and $7.6 million at a foreclosure
auction for the Lyceum, previous owner Eric Richmond reportedly defaulting on the mortgage triggering its foreclosure in 2013. New
building permits were issued by the city’s Department of Buildings (DOB) in May, and construction is expected to be completed by 2017.
Sources: http://www.dnainfo.com/new-york/20150218/prospect-lefferts-gardens/condos-planned-for-clarkson-avenue-parking-lot-that-sold-for-135m
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Project Plans in Progress (cont’d)
626-630 5th Avenue (South Slope/Greenwood Heights) – Brooklyn developers George Malafis and Ioannis
Glyptis filed permits applications in July to convert the 2-parcel assemblage into a 22,304-square-foot
mixed-used development. Proposed plans call for the merging of the 3-existing adjacent buildings that total
about 14,800 square feet; and a vertical expansion of 3-additional stories for a total 6-story project. The new
development will house 27 residential units, 2,000 square feet of ground level retail space, and a 14-car
garage as required by zoning. The project’s design will incorporate the facades of the 3-existing buildings,
including the 96-year old structure located at the corner. Formerly home to an Eagle Provisions market for
75-years which closed in June, ownership Richard and John Zawinsky deciding to sell the corner property
they owned for close to 40-years for $7.5 million ($336 per buildable-square-foot) in March.
626-630 5th Avenue - Rendering
490-496 Lefferts Avenue (East Flatbush) – Loketch Group are constructing the 7-story, roughly 31,289-squarefoot residential development that will house 38-units spread across 26,050 square feet, 5,239 square feet
of ground level medical office space, and 19-parking space below grade as required by current zoning. The
70-foot-tall building will rise on the 8,800-square-foot vacant lot that the developer acquired last October for
$3.525 million ($113 per buildable-square-foot). Construction is expected to wrap up in 2016, with excavation and
foundation work recently completed.
88 and 92 Linden Boulevard (Flatbush) – Brookland Capital was anticipated to
file plans in July for the construction of a 7-story, 60,500-square-foot residential
development. Decisions of whether the project will be rental or a condominium
offering have yet to be made, but the new building will house 66-units with a
gym and common roof deck; as well as 33 parking spots as required by zoning.
Located just south of the Prospect Lefferts Park historic district, groundbreaking is expected this year. The 2-property development site totaling 12,000
square feet, with existing 2-family homes on both, was acquired in May for
$6.5 million ($107 per buildable-square-foot).
490-496 Lefferts Avenue
Rendering
88/92 Linden Boulevard - rendering
421-447 Avenue P (Midwood) – Time Equities submitted an offering plan to the Attorney General’s office for the planned condominium
conversion of the 33-unit, roughly 66,500-square-foot residential rental property. Pending approvals, ownership intends to sell the
8,000-square-foot retail component at the base of the 6-story building at an average asking price of $1,000 per square foot ($8 million). The
original multi-parcel development site was assembled by Sitt Asset Management between 2002 and 2003 for a total cost of $9 million ($135
per buildable-square-foot) to construct a condominium project. The new building dubbed the Venetian was completed in 2012 during the
economic downturn, Sitt ultimately deciding to initially rent the units until the sales market rebounded. In December, Time Equites acquired
the property for $27 million ($406 per square foot).
1704-1708-1712 Ocean Avenue (Midwood) – Queens-based Bluejay Management filed plan applications in July for the construction of a
7-story, 54,029-square-foot residential development that will house 64-units plus 40-parking spaces below grade which is slightly more than
zoning requirements. The 3-existing single-family houses located between the Avenue L and Avenue M were acquired earlier this year for
$5.4 million ($100 per buildable-square-foot); and approvals for demolition permits that were already filed are still pending.
Sources: http://www.brooklyneagle.com/articles/2015/4/22/whats-fifth-avenue-eagle-provisions-owners-sold-their-building-developer
http://vanishingnewyork.blogspot.com/2015/05/eagle-provisions.html
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Williamsburg - Development Activity
Subway Access Brings Uptick in Development on Ainslie Street
Development activity has been on the rise along Williamsburg’s Ainslie Street which offers the convenience of access to both the G- and
L-subway lines.
82 Ainslie Street – Juda Klein of Parkview Management filed alteration permits in June for the residential conversion of the existing 2-story,
6,000-square-foot warehouse located 1-block from the Metropolitan Avenue G-train station. The planned project will add 4-stories delivering
a 16,000 square foot building that will house 16 residential units spread across 11,500 square feet and a 4,500-square-foot retail component.
Other activity along the corridor include:
31 Ainslie Street – The Chetrit Group’s planned 5-story, 158,698-square-foot mixed-use development to be comprised of 94,000 and
65,000 square feet of commercial space and a 17-unit residential component respectively.
66 Ainslie Street – Slate Property Group plans to construct a 7-story, 42,500-square-foot mixed-use
development that will house 50-rental units and retail space; having acquired the site in September for
$15 million ($353 per buildable-square-foot).
76 Ainslie Street – Plans were filed last year by an undisclosed developer for the construction of a 7-story,
12-unit residential building on the site that can accommodate 13,662 buildable square feet, replacing an
existing single-story, 5,062-square-foot warehouse.
66 Ainslie Street - Rendering
136 Ainslie Street – Owner Dominick D’Erasmo, an executive of Pandora Inc. filed applications in June
for a 5-story, 3-unit residential development on the site he has owned since 2001.
Sources: http://ny.curbed.com/tags/slate-property-group
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Williamsburg (cont’d)
New to Market
95-97 Grattan Street – New York-based developer Astral Weeks has introduced the recently rezoned 5,000-square-foot vacant lot that
borders Bushwick to the market in July, at an asking price of $2.7 million ($282 per buildable-square-foot). The sale includes plans for (2)
4-story residential buildings that will house a combined total of 14 rental units spread across a total of 9,577 square feet. Approvals were
already secured from the Board of Standards and Appeal (BSA) for a residential development on the lot that was zoned for industrial use
only. The 2-parcel assemblage located between Knickerbocker- and Porter Avenues last traded for $500,000 in 2012.
Sales to Watch for
296 and 300-306 Wythe Avenue – The Brooklyn investment team of Joseph Brunner and Abe Mandel are reportedly in contract to acquire
the development site zoned for either commercial or residential use for about $27 million ($675 per buildable-square-foot). The 2-parcel
assemblage can accommodate close to 40,000 buildable square feet; and the buyers are intending to construct a mixed-use development
to house residential space with retail at the base. The seller, Tri-Boro Shelving & Partition which is controlled by the Demaio family, has
owned the property since the 1960’s.
Recently Sold
525-555 Broadway – Blesso Properties has purchased the site of the former 3-story, 60,000-square-foot Lincoln Savings Bank building for
$33 million ($174 per buildable-square-foot) from the entity Broad and Boerum, LLC reportedly controlled by Shaya Weissfeld. The roughly
33,177-square-foot irregular-shaped site located at the southeast corner of Boerum Street can accommodate nearly 190,000 buildable
square feet. The West Village based developer secured $12.7 million in preferred equity from lender ATCO Properties & Management; and
a $21.5 million senior mortgage from Centennial to close the transaction. The property had been introduced to the market last August,
previously trading for $13.4 million ($71 per buildable-square-foot) in 2007. New ownership plans to redevelopment of the existing structure,
as well as construct a mixed-use tower on the site’s vacant parking lot to include a residential component that will house 100-rental units.
Sources: http://ny.curbed.com/archives/2015/08/20/offices_100_rentals_headed_to_broadway_in_williamsburg.php
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Williamsburg (cont’d)
Project Plans in Progress
416-418 Kent Avenue / 420-428 Kent Avenue – Initial renderings were released of the trio of
24-story residential developments that Spitzer Enterprises is planning to construct on the 2.8 acre
site acquired for $165 million from Rector Hylan Corp. in February under a 1031-exchange. Although
full details of the estimated $700 million rental project have yet to be announced, the development
will add 856 units to the borough’s shoreline — of which 20% will be designated as affordable, plus
2-rooftop pools.
416-418/420-428 Kent Avenue - Renderings
Redevelopment of the site dates back to 2006 when plans by the previous owner to build 450 residential units spread throughout 18- and
24- story buildings became stalled. The city approved a 3-year extension of the special permit secured, requiring that the construction must
break ground prior to the permit’s 2016 expiration. The assemblage is located 2 blocks from Two Trees Management’s Domino Sugar project
and currently houses movie studio Cine Magic Riverfront Studios. Comprised of 6-tax lots, the property was primarily used by the Kedeem
Winery Company; and had been purchased by Rector Hylan in 2003 for $11.3 million.
89 Grand Street – Investor Philip Riese is converting the 3-story loft warehouse that dates back to the
1880s into a residential conversion that will result in a 3-story addition. A veritcal expansion will add
roughly 4,800 square feet to the building’s current 8,200-square-foot footprint, plus a new 2-story building
will be constructed next door. The existing roof and part of the warehouse’s outer walls will be removed
to create an outdoor terrace. Located between Berry Street and Wythe Avenue, the building along with
an adjacent vacant lot was acquired for $4 million.
89 Grand Street - Rendering
58 Grattan Street – A Park Slope-based entity LLC reportedly headed by Dawson Stellberger filed permit applications to construct a
4-story, mixed-use project totaling 7,426 square feet. The new development will be comprised of art studios on the upper 3-floors, ground
and cellar retail space, and feature a roof deck. The 2,500-square-foot parcel was purchased in 2014 for $855,000 ($115 per buildable-squarefoot). Located 2-blocks from the Morgan Avenue L-subway station, the project delivering newly constructed studio-space is atypical for the
area that is dominated by art studios, galleries, and live/work spaces housed within existing old factory buildings.
15 Jackson Street – Developer Isaac Schwartz filed permits in 2014 for the construction of the 8-story,
34,019-square-foot residential development that will include 22-parking spaces as required by zoning. The
44-unit project will replace a single-story warehouse that was demolished last year; having acquired the
9,000-square-foot corner site in 2013 for $5.2 million ($153 per buildable-square-foot).
15 Jackson Street - Rendering
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Williamsburg (cont’d)
Project Plans in Progress (cont’d)
892-894 Metropolitan Avenue – Attri Enterprises filed applications to construct a 4-story, 5050-square-foot mixed-used development
to house 5 residential units and a 630-square-foot ground level retail component. The new building replaces a 2-story, 6,830-square-foot
commercial building that was demolished last year.
150 North 12th Street – Greenpoint-based developer Elrob Realty has restarted construction of the 51-unit
residential rental development. The inability to secure construction financing at the onset of the recession
in 2008 stalled the project shortly after the foundation was laid. Work on the 7-story, 45,778-square-foot
project is moving ahead, having secured $18 million in financing from Eastern Union Funding. The site that
Elrob has owned since 1996 is located directly across from McCarren Park; and amongst the high-end units
will offer 3-duplex units with individual street entrances and private backyards on the first 2-floors of the
building. The required 21-parking spaces will spread across the first and cellar levels. Additional air rights
had been purchased from neighboring properties on North 12th and Berry Street in order to increase the
project density beyond the allowable 38,580 square feet.
150 North 12th Street - Rendering
40 Debevoise Street – Mapleton, Brooklyn-based Abe Management filed permit applications in July for the construction of a 5-story,
28,200-square-foot mixed-use development just north of the Bedford-Stuyvesant border. The new building is expected to house 22
residential units spread across 22,000 square feet, a 1,000-square-foot medical facility, 5,200 square feet of ground level retail, and a belowgrade 17-car parking garage. The existing parking lot between Graham Avenue and Humboldt Street has been owned by Abe Management
since 1987. New residents will have the convenience of the J/M Flushing Avenue subway stations just 2-blocks away.
93-97 Wythe Avenue – Initial renderings were released for the 59,100-square-foot hotel project being
developed by London, U.K. firm Ennismore Capital into a Hoxton Hotel. Initial permit applications filed last
year reveal a 9-story development with 175-keys spread across 49,100 square feet, plus 10,000 square
feet of manufacturing space that appears to be intended for a food-related use. Although a completion
date has yet to be announced, partial job permits were issued in March.
The 18,000 square foot site was acquired by New York-based Sydell Group in January 2013 for $10 million,
but an offer of $17 million in less than one-year prompted the New York based company to abandon their
own plans for a hotel project, flipping the site to Ennismore Capital in a sale that closed that August.
Ennismore Capital acquired the Hoxton hotel based in Shoreditch, London in 2012, and subsequently had
been seeking new locations to expand the budget-friendly hotel brand.
93-97 Wythe Avenue - Rendering
71 North 7th Street – JDS Development Group will debut in the borough, having filed plans in July for the residential condominium
conversion of the existing single-story, 7,500-square-foot structure. The project will also include a vertical expansion of 2-stories for a total
project size of 15,321 square feet that will house 4-units across 9,158 square feet and 6,163 square feet of ground level commercial space.
The project is being co-developed with Greenpoint-based Largo Investments, having acquired the block-through site in March for $10.5
million ($685 per buildable-square-foot).
28-46 Roebling Street – Greenpoint-based developer Eser Realty plans to redevelop the existing 4-story,
43,800-square-foot warehouse, adding a 5th-floor as part of the residential conversion. The roughly
63,700-square-foot project will house 58-units spread across 43,700 square feet and a 10,000-square-foot
commercial component. Since the site falls within the 100-year flood plain, both the first floor and cellar
levels will be flood-proofed. A $14 million loan was reportedly secured from an undisclosed lender for the
estimated $26 million project that is expected to break ground in the near future for a 2016/2017 delivery.
28-46 Roebling Street - Rendering
Sources: http://www.hospitalitynet.org/news/4056251.html
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Williamsburg (cont’d)
Project Plans in Progress (cont’d)
21 Powers Street – Slate Property Group is planning to construct a 4-story, 13,192-square-foot
residential condominium that will replace the existing single-story, 2,375-square-foot warehouse.
Building applications for the project were filed in January; and construction is expected to begin
this fall with a projected 2017 delivery. Slate acquired the 6,800-square-foot site in 2013 for an
undisclosed price.
329 Broadway – Parkview Management filed building applications in July for the construction of
21 Powers Street - Rendering
a 16-story, mixed-use development on the vacant corner parcel that was formerly home to the
Commodore Theater. The over 96,000-square-foot project will house 63 residential units spread across 59,236 square feet; 12,614 square
feet of retail space on a portion of the first 2-floors; and 24,575 square feet for a community facility on portions of the 3rd-5th floors. The
109-space below grade garages, which seems oversized due to the site’s proximity to transportation, was likely included to accommodate
the large amount of community space. Located next to the elevated J/M/Z subway tracks at the corner of Rodney Street, the 24,532-squarefoot lot was acquired for $4.7 million in 2013.
369-375 Berry Street – Monroe, NY-based developer M&B Monroe Inc. is planning to construct a 10-story,
13,491-square-foot mixed-use development on the former parking lot. Plans were filed in February 2014 for
the new building that will house 10 residential units spread across 8,481 square feet, 2,383 square feet of
commercial space, and 2,627 square feet of community space.
196 Montrose Avenue – South Williamsburg-based Cheskie Weiss filed alteration applications for a vertical
expansion of the existing 3-story, 4,140-square-foot residential building. The developer intends to add 2-stories
atop the structure to house a total of 6 additional residential units. Upon completion, the 15-unit building will
369-375 Berry Street - Rendering
have an interior density of roughly 14,234 square feet. Alteration filings have been on the rise, offering small
developers a way to boost site density without spending prohibitive amounts of money on construction, while also avoiding the need to create
expensive underground parking. In addition, the city’s J-51 program reportedly provides an incentive to landlords in the form of a tax break in
exchange for preserving at least 50% of the old building and keeping new units rent-stabilized for up to 20-years.
432 Rodney Street – Slate Property Group filed permit applications for the planned conversion of the single-story, 21,500-square-foot
warehouse into a 126-unit residential rental development. A 7-story, 99,000-square-foot building will replace the existing structure,
comprised of 85,200 square feet for residential use and roughly 14,000 square feet of commercial space. The developer is reportedly
in contract for an undisclosed price to acquire the former Quaker Sugar Company distribution center located near the G and L subway
stations at Metropolitan Avenue and Lorimer Street.
207 South 3rd Street aka 225-227 Roebling Street – Loketch Group filed alteration applications
in August for the expansion of the existing 2-story mixed-use structure. Project plans for the
22,451-square-foot development include a vertical expansion of 3-stories, adding 6 residential units
for a total of 10-units spread across 13,751 square feet with 8,700 square feet of ground level
retail. Demolition has already begun at the site that last traded in 2014 for $10.15 million ($452 per
buildable-square-foot).
207 South 3rd Street - Rendering
232 Siegel Street aka 191-231 Moore Street – Heritage Equity Partners filed permit applications for a 10-story, 97,345-square-foot boutique
hotel development. The new 18-key hotel will rise 130-feet, joining 5-existing warehouse buildings that are expected to be converted for
creative office and retail use. The 2.3 acre property that spreads across multiple tax lots bordering Bushwick was acquired last August for
$28.3 million from Cooper Tank & Welding; and included a total of 170,000 square feet of development rights.
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Greenpoint - Development Activity
Greenpoint Landing Project Update
The 10-block waterfront complex being developed by Part Tower affiliate Greenpoint Landing Associates has been moving along at a nice
pace. Recent news brings the announcement of the groundbreaking for a 103-unit affordable housing development that will rise near the
corner of Dupont and Commercial Streets that will be co-developed along with L+M Development Partners. Originally receiving $136,000 is
subsidies from the city for each affordable unit created per the agreement struck during the Bloomberg administration, the city renegotiated
the terms resulting in a lesser $68,000 in subsidies per unit making the project more affordable for the city.
The completed multi-building project will add over 5,500 residential units with 1,400-units designated for affordable housing, 9-acres of new
parks, an elementary school, riverside walkways and open space, and a potential ferry landing to the neighborhood. The project is expected
to take about 10-years to complete, most of which has yet to be designed. Initial plans will start with 3-low-rise, permanently affordablehousing buildings that will be built and financed in partnership with L+M Development who will manage them upon completion. Later
development phases will bring several high-rise buildings, of which the first 2-market rate developments will be rentals.
Filings that have been reportedly submitted to date include:
21 Commercial Street – A 6-story, 85,033-square-foot development containing 93 affordable housing units and 2,557 square feet of
commercial space being co-developed with L+M Development Partners.
33 Eagle Street – A 7-story, 98-unit affordable housing development being co-developed with L+M Development Partners.
37 and 41 Blue Slip – The 2-building project will be comprised of a 30-story, 372-unit development; and a larger, 39-story, 401-unit development.
37 Commercial Street - A 39-story, 377,864-square-foot development comprised of 401 residential units and 500 square feet of retail space.
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Greenpoint (cont’d)
Project Plans in Progress
78 Freeman Street – Developer Investmates Real Estate is planning a 5-story, 5,000-square-foot
residential condominium located one block from the East River that will house 4-units. The building’s
first floor will feature a duplex-unit with cellar and garden space; and the top 2-floors will deliver a
duplex penthouse with balcony and private roof deck. The existing 2-story frame house was acquired
earlier this year for $1.65 million ($330 per buildable-square-foot). Demolition permits and plans have
yet to be filed, but the developer is hoping to break ground this year.
193-197 Freeman Street – Property owner Yidel Hirsch filed applications in June to construct a
4-story, 20,000-square-foot residential development. The new building will replace an existing
single-story, 5,782-square-foot warehouse that has yet to be demolished.
160 West Street - Rendering
170-174 West Street - Rendering
78 Freeman Street - Rendering
10 Huron Street - Rendering
160 West Street – Developer Saddle Rock Equites is constructing the 6-story, 20,000-square-foot residential development dubbed The
Gibralter that is rising near the waterfront and expected to be completed next year. The project will be comprised of 14-luxury loft units
with mechanicals to be located on the building’s 2nd floor since the property is within a flood zone. The property last traded in June 2014
for $4.5 million ($225 per buildable-square-foot) according to city records.
170-174 West Street – Upper West Side-based HML Developments is planning to construct (2) 6-story buildings that will have a combined
total of 22,770 square feet spread across 3-parcels. It is likely that the decision to divide the 15 residential units between 2-buildings
was made in order to avoid the otherwise required 7-parking spaces for a 15-unit, single-structure project. The 12,385-square-foot vacant
assemblage was acquired in 2013 for a total of $3.7 million ($162 per buildable-square-foot).
10 Huron Street formerly 145 & 155 West Street – The 39-story, roughly 475,400-square-foot tower currently under construction is
being co-developed by Mack Real Estate and Palin Enterprises. Original permits filed had received approvals in 2009 for the previously
stalled project, receiving permit renewal approvals in June 2014 despite the original plans no longer meeting current zoning laws requiring
integration of both market- and affordable- rate units. The site’s existing single-story, 95,000-square-foot warehouse that formerly housed
the Huxley Envelope Factory was demolished in January to make way for the new tower. Upon delivery, the development will house 500
residential units spread across 463,000 square feet — 20% to be rented at below-market rates; 3,800 square feet of medical office and
8,600 square feet of retail space on the 1st floor; and 257 parking spaces distributed between the cellar and 2nd floor despite nearby G-train
and ferry access.
211 McGuinness Boulevard – Stellar Management is developing an 8-story,
210,000-square-foot mixed-use rental project. The new building will house 197-units
spread across 160,000 square feet, of which 20% will be designated for affordable
housing; 18,300 square feet of retail space; and 112 parking spaces below grade.
The nearly block-long site last traded for $13.9 million in 2014; and demolition of the
exiting 5 structures is already underway.
211 McGuinness Boulevard - Rendering
Sources: http://www.dnainfo.com/new-york/20150708/greenpoint/40-affordable-units-rooftop-pool-coming-greenpoint-building-developer/slideshow/631317
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City Point Project - Rendering
City Point Project - Development Update
Extell Development will be joining the collective group of developers as a result of paying $115.5 million for the rights to build a mixed-use
tower on the last development site at City Point. The project will launch Extell’s debut into Brooklyn, the company which has developed
several high-end condominium towers over the last few years will make a shift into rentals as a result of the deal. Extell’s move into
Brooklyn was most likely prompted by the continued lack of affordable land in the city; and an opportunity for a large project that made
sense in the borough that some anticipate to be the next top market.
City Point Overview:
The project located on the site of the former The Gallery at Fulton Street aka Albee Square Mall which was demolished in 2007, aims
to be LEED-silver certified. The multi-parcel site is bound by Flatbush Avenue, Gold Street, and Dekalb Avenue; and is intended to serve
as a gateway to Downtown Brooklyn.
Estimated to cost $1 billion, the project rose out of the vision of the 2004 Downtown Brooklyn Development Plan; and will be comprised
of 3-adjoining residential towers constructed in 3-phases. Totaling 1.8 million square feet, it will also include 30,000 square feet of office
space; and a 675,000-square-foot shopping center that some sources have compared to the Time Warner Center in Manhattan, hoping to
bring a shopping experience to the borough like no other.
Under the terms of the lease agreement between the city which owns the land and the development team of Washington Square
Partners and Acadia Realty Trust — dubbed Albee Development LLC, the project must be completed by 2020. Although details of the
lease with the city were not disclosed, the summary of the 2007 proposed agreement had indicated that the lessees would owe the city
“payments in-lieu-of taxes” (PILOTs) that incorporate tax incentives available under the Industrial and Commercial Incentives Program
and the 421-a Program. The new lease also accelerates the developers’ option to purchase the property, and changes the sales price to
$20 million in 25 years.
In 2009, $20 Million worth of tax exempt recovery bonds was awarded to the project through the federal stimulus program; and an
additional $3.2 million in tax breaks was awarded from the NYC Industrial Development Authority to help subsidize the office component
of the project. Remaining financing will be mostly private money, accounting in part for the project’s lag in progress since its inception over
10-years ago that was further hindered during the recession when anticipated funding from the California Public Employees’ Retirement
System reportedly withdrew its backing from the project.
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City Point Project (cont’d)
Project Development Overview:
Retail Component – The creation of the 5-story, 675,000-square-foot shopping center is being led by the partnership of Washington Square
Partners and Acadia Realty Trust. Following the purchase of the leasehold interest from Thor Equities, the co-developers secured a lease
agreement that expires in 2078 from the city — the site’s land owner. The Downtown project has attracted national retailers to anchor the
mall; and as of early June although the mall was 65% leased, the 18 storefronts that make up the entire ground level perimeter remain
vacant at asking rents of $200-$300 per square foot.
•
Century 21 – The popular fashion discount store is expected to open its 125,000-square-foot store spread across floors 3-4;
•
Target - Plans to open its urban format CityTarget store in 125,000 square feet across the entire 2nd floor;
•
Alamo Drafthouse – The Austin, Tx-based company will be making its debut in New York City, installing 7-theaters offering
a selection of art house features and commercial fare during the films, 2-bars, and an outdoor terraced balcony on the 5th floor.
•
Dekalb Market - The 27,000-square-foot food hall will be located on the concourse level of the complex, and provide food offerings from
40 vendors. In addition to the market, an array of restaurants will be housed within 10,000-20,000 square feet of ground level space.
Residential Tower / Phase 1 – The 250-unit mixed-income project — 50-30-20 arrangement of market rate - middle income – low income
units, is being led by BFC Partners. The 230,000-square-foot tower that has already topped-out is expected to be completed this year.
Residential Tower / Phase 2 – The 48-story, 440-unit market rate development dubbed City Tower is being led by the Brodsky Organization.
The project launches Brodsky’s entry into the Brooklyn market.
Residential Tower / Phase 3 – A 665,000-square-foot project comprised of 600,000 square feet of residential space expected to house up
to 500 rental units; and 65,000 square feet of commercial space spread across 4-stories for a shopping center mall is being led by Extell
Development. The residential component could break ground by the end of the year for a 2019 completion; and it could potentially soar
to a height of 60-stories making it the tallest tower within the project. The retail component which upon expected 2017 completion will be
owned by Washington Square and Arcadia which control the site.
Downtown Brooklyn’s Renaissance:
Late 1980s – The 8-block stretch of Fulton Street widened its sidewalks and banned car traffic in an effort to increase shopper foot traffic.
Early 1990s – MetroTech Center was formed by creating a 16-acre pedestrian zone bound by Jay- and Johnson Streets, and Flatbush- and
Myrtle Avenues. The sprawling business and education center brought the construction of new office buildings that attracted back-office
jobs for Manhattan banks.
2004 – The rezoning that permitted taller buildings in the area prompted a surge of residential development adding 5,500 new housing units
by the end of 2014, with a total of 12,750 units in different phases of planning and construction. In addition, increased hotel development
added 1,000-keys spread across 9 hotel projects during the same period.
Retail – The neighborhood’s retail mix has changed from its long time storefronts filled with hip-hop fashions and discount jewelry, to now
include several national chains including H&M, T.J. Maxx, Old Navy, Forever21, and Shake Shack.
Source:
http://www.nytimes.com/2015/06/03/realestate/commercial/city-point-project-in-brooklyn-gets-unlikely-partner-in-extell.html?_r=0
http://citypointbrooklyn.com/about/our-story/ • http://www.nycedc.com/project/city-point
http://www.brooklyneagle.com/articles/residential-developers-bfc-brodsky-organization-named-city-point-phase-ii
http://rew-online.com/2015/02/06/brodsky-tops-out-city-point-apartment-building/ • http://bfcnyc.com/portfolio/city-point/
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City Point Project (cont’d)
Gold Street Looking North - Rendering
1 Dekalb Avenue - Rendering
Prince Street Entrance to CityTarget, Alamo Drafthouse Cinema & Century 21 - Rendering
1 Dekalb Avenue
Willoughby Park & Gold Street - Rendering
1 Dekalb Avenue
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Macy’s Strikes Deal To Revitalize Fulton Street Store
422 Fulton Street / 450-458 Fulton Street / 11 Hoyt Street (Downtown Brooklyn) – Macy’s, a Cincinnati, OH-based multinational holding
company had announced last year its intentions of re-evaluating its future in Downtown Brooklyn. The potential sale offering of Macy’s longtime flagship at 422 Fulton Street and a multi-level garage at 11 Hoyt Street came after the company abandoned earlier plans to renovate
the store, instead opting to take advantage of the strong sale market.
In August it was reported that developer Tishman Speyer will be making its debut in the borough, having agreed to pay $170 million in cash
for the 5-upper floors of the 9-story building in a deal that is expected to close this fall. The developer intends to redevelop the upper portion
into 10-floors of office space, also agreeing to purchase Macy’s Hoyt Street garage which offers the potential for a mixed-use development.
Macy’s will shrink the store’s current 378,000 square feet of selling space to 310,000 square feet within the remaining 4-floors and
basement, and utilize $100 million in funds for renovations that the retailer will receive from the developer in installments over the next
3-years. Renovations are expected to begin next spring and include an interior refurbishing, the uncovering of windows to allow more
natural light, upgraded restrooms, raise the ground floor ceiling heights, and the installation of new escalators and elevators. In addition, a
Starbucks will open on the Fulton Street side of the building that will be accessible even after store hours.
Already Macy’s has struck a deal to relocate their photo studio currently housed within the Fulton Street building to a 150,000-square-foot
space at the Factory Building, 30-30 47th Avenue in Long Island City. The 1926 building originally served as Macy’s furniture warehouse,
and is nearing completion of a major overhaul to attract creative and technology tenants.
Existing Macy’s and Hoyt Street Garage - 422 Fulton Street / 11 Hoyt Street
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Macy’s (cont’d)
Macy’s had begun soliciting proposals for the offering earlier in the summer. It comprised a total of close to 1.345 million square feet of
development rights with the Fulton Street department store accounting for 759,800 square feet and the Hoyt Street garage the remaining
580,000 square feet. Redevelopment options at the time had included the construction of a new 300,000-square-foot flagship Macy’s, or
rehabilitation of the existing structure; and a 25,000-square-foot Bloomingdale’s Outlet store that would have frontage along Fulton Street.
The remaining roughly 1 million square feet of new residential development rights had been speculated to fetch a total of $160 million ($160
per buildable square foot) based upon the most accurate recent comparable sale at the time of 33 Bond Street (276-300 Livingston Street)
with about 500,000 square feet of development rights that was purchased by TF Cornerstone in 2013 for $70 million ($140 per buildable
square foot).
However the discovery of a 2nd minority owner that surfaced last August may have potentially given rise to some previously unexpected
redevelopment challenges. Real Estate investment firm Crown Acquisitions apparently owns a nominal stake in the Hoyt Street property.
The roughly 10,000 square feet of floor area is located just behind their building at 452 Fulton Street on the corner of Hoyt Street and
adjacent to the garage. The property was purchased in 1985 from Federated Department Stores — now known as Macy’s; and according to
the deed describing the property transfer, the sale included 5 property interests within the building envelope of the garage.
Design submissions from an initiated project competition had been revealed that also show the inclusion of 450-458 Fulton Street. The
former A.I. Namm & Son Department Store was landmarked in 2005 as the sole surviving portion of the important enterprise that once
covered the entire block. The majority of the building that dates back to 1924 had been sold to Federated Department Stores (renamed
Macy’s, Inc. in 2007) in 1957 for $2.85 million.
Proposed designs were released in January as reportedly a part of a proposal submitted by Brookfield, who was rumored to be a contender
for the acquisition of the properties at the time. The garage would be repositioned into retail that would likely deliver a new flagship for
the store on the corner of Livingston Street, prompting the possibility of renaming the site 217 Livingston Street due to better signage
visibility. In addition, a high-rise residential tower would be included in the project, utilizing the roughly 1 million square feet of unused
development rights.
Additional design submissions similarly repositioned the garage into new retail space, but expanded the project to include 2-residential
towers that in addition to 450-458 Fulton Street appear to replace the existing Macy’s building at 422 Fulton Street. One project rendering
proposed a development totaling 1.2 million square feet comprised of 2 residential towers housing 230 condominium units and 468 rental
units, plus the repositioning of the Hoyt Street garage into 200,000 square feet of retail space that would utilize both the Fulton- and
Livingston Street addresses.
.
Various Rendering Proposal Submissions
Source:
http://www.nyc.gov/html/lpc/downloads/pdf/reports/nammstore.pdf
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Downtown Brooklyn - Development Activity
Sales to Watch for
8-14 and 16 Nevins Street / 299-301 Livingston Street – The partnership of Adam America Real Estate and Slate Property Group are
reportedly in contract to purchase the 3-parcel assemblage for over $50 million ($278 per buildable-square-foot) from independent investor
Israel Neiman and a family of investors reportedly tied to the Colibri Group. The development site can accommodate over 180,000 buildable
square feet where new ownership is planning to construct residential condominiums. According to city records, the 2-building Livingston
Street property last traded for $5.65 million earlier this year; and the Nevins Street portfolio for roughly $16.69 million in 2013 after Bushburg
Properties reportedly flipped the contract upon abandoning plans for a residential rental project. The sale is expected to close this fall.
211-215 Schermerhorn Street – GPB Realty Capital is reportedly in contract to purchase the 7,556-square-foot vacant development site
located at the border of Boerum Hill for an undisclosed price from Brooklyn developer Nicholas Cammarato. The 3-parcel assemblage
offers a potential residential development opportunity of 75,000 buildable square feet. Ownership had previously introduced the property
to the market last year, ultimately deciding to withdraw the offering. The sale was reintroduced this year at an asking price near $30 million
($400 per buildable-square-foot) representing a $4 million increase over the late 2014 pricing. Some sources anticipate that the sale which
is expected to close before the end of the year will fetch a price higher than the $16 million ($213 per buildable-square-foot) paid in 2013.
Recently Sold
585-587 Fulton Street – DUMBO-based RedSky Capital acquired the 3-story commercial building for $13 million, bringing the developer
closer to a 9-parcel assemblage that fronts both Fulton Street and Flatbush Avenue Extension. To date, RedSky has reportedly invested $63
million for the 8 parcels the company began assembling in 2012. The assemblage spans 565-591 Fulton Street and 396 Flatbush Avenue
Extension, and can accommodate 280,000 buildable square feet — with 571 Fulton Street the only remaining loose end. If the final parcel
of the large development block is acquired from Greenpoint-based investor Jackson Ma, development potential would increase to 330,000
square feet. Development plans for the site have yet to be announced, but a $2.644 million mortgage was secured for the 8-buildings in June.
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Downtown Brooklyn (cont’d)
Projects on the Horizon
41 Willoughby Street aka 270-274 Flatbush Avenue Ext. – Savanna has filed variance applications for a proposed 44-story, 310,000-squarefoot mixed-use development, agreeing to designate 30% of the project’s 270 residential units for affordable housing if rezoning is approved.
The new tower will also house 28,000 square feet of retail space at its base, plus 34,000 square feet of office space on the 3rd- and
4th floors. The existing 3-story, 44,056-square-foot building was acquired January 2014 for $28 million from the Institute of Design &
Construction; and can accommodate reportedly up to 120,000 square feet of residential space versus the roughly 248,000 square feet
proposed. The Midtown-based developer is hoping the corner site project will be joining other large developments in the area that are
reshaping the district such as the 1.8 million-square-foot City Point Project located directly across the street; and Avalon Bay’s 823-unit,
nearly 1 million-square-foot rental project at 100 Willoughby Street dubbed Ava DoBro.
Project Plans in Progress
Brooklyn Academy of Music (BAM) – The performing art center is planning a $25 million project dubbed
BAM Strong that will further solidify BAM as an anchor on the northern border of the Downtown
Brooklyn Cultural District. The expansion project will connect the BAM Harvey Theater at 651 Fulton
Street, a vacant site at 653 Fulton Street, and the ground floor condo of the high-rise condominium
at 230 Ashland Place by a new canopy that announces BAM’s presence, creating permanent visual art galleries plus new amenities
including balcony seating in the Harvey Theater and a café will be created. Project fnancing is comprised of $17 million that BAM has
raised so far, along with $6.2 million contributed by the city. Work is expected to begin soon for an
anticipated completion before the end of 2017. BAM dates back to 1857, starting as a single theater
on Montague Street in Brooklyn Heights. Over the years its growth has reportedly mirrored, and
in many ways, helped drive the real estate and cultural rise in Downtown Brooklyn. Roughly bound
by Flatbush Avenue, Fulton Street, Hanson Place and St. Felix Street on the border of Downtown
Brooklyn and Fort Greene, the Brooklyn Cultural District now boasts over 40 non-profit visual,
BAM/651-653 Fulton Street - Rendering
performing and media arts organizations including the Mark Morris Dance Center, Theater for a
New Audience, and the BRIC House arts center.
250 Ashland Place – The Gotham Organization and DT Salazar are co-developing the 52-story, roughly
521,000-square-foot building mixed-use tower that broke ground in May 2014. Expected to reach a linear
height of 586-feet, the development will add 586 residential units of which 282-units will be permanently
designated for affordable to low- and middle-income residents; plus 10,800 square feet of retail space and
8,000 square feet of office space for a yet-to-be-named cultural organization on the tower’s ground level.
Construction financing for the project was secured in late 2013. The bulk of the $278 million debt came
from lenders Wells Fargo, TD Bank, and Capital One which collectively provided $142 million. Other
financing in part was secured through federal Low Income Housing Tax Credits and tax-exempt bonds
from the city’s Housing Development Corporation (HDC) in the amounts of $19.3 million and $33 million
respectively.
The project is part of the Downtown Brooklyn Cultural District that since 2004, the city has reportedly
spent over $100 million on new facilities, public spaces and affordable housing projects. Other towers
within the BAM District include Dermot Organization’s 42-story, 327-unit residential rental built in 2013
at 66 Rockwell Place; and Two Trees Management’s mixed-use development dubbed BAM South at
286 Ashland Place which is currently under construction and will house 379 residential units — 20%
designated for affordable housing, 43,000 square feet of retail space, an outdoor public plaza totaling
100,000 square feet, and 50,000 square feet of cultural space to be occupied by a BAM movie theater,
new Brooklyn Public Library branch, and a 651 Arts dance studio.
Source:
http://www.nytimes.com/2015/08/01/arts/brooklyn-academy-of-music-announces-dollar25-million-project-to-link-3-spaces.html
http://www.bam.org/about/history/bam-hamm-archives
250 Ashland Place - Rendering
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Downtown Brooklyn (cont’d)
Project Plans in Progress (cont’d)
117 Livingston Street aka 415 Red Hook Lane – Quinlan Development filed permits in September for the construction of the 21-story,
120,000-square-foot mixed-use development. Demolition of the 4 existing low-rise structures is already underway to make way for the
project that will house 110-units spread across 93,000 square feet — 20% will be designated for affordable housing; and a 14,000-squarefoot commercial component at the base.
88 Schermerhorn Street – Second Development Services is planning to construct a 27-story, 39,040-square-foot residential development.
The new tower that will rise on the 33-foot wide site will replace a 4-story walk-up. Increased density was gained as a result of the property’s
location within the Special Downtown Brooklyn District which largely eliminates parking requirements. Demolition permit approvals have
already been received. Upon the expected 2017 delivery, the building will be 280-feet high and house 23-units. The developer acquired the
property last year for $11 million ($282 per buildable-square-foot).
Development activity along the corridor has risen and other projects along the street include:
•
319 Schermerhorn Street – A planned 21-story, 87,445-square-foot
residential condominium project;
•
333 Schermerhorn Street – A planned 54-story, 519,000-squarefoot residential development dubbed The Hub is expected to rise on
the 4-parcel assemblage;
•
211-215 Schermerhorn Street – The 7,556-square-foot vacant lot was
introduced to the market last year. Reportedly now in contract for an
undisclosed price, the site and can accommodate a potential
residential development of 75,000 buildable square feet;
•
285 Schermerhorn Street – A proposed vertical 7-story enlargement
and conversion of an existing 7-story building for a total of 91,000
square feet;
•
295-309 Schermerhorn Street – The headquarters of the International
Society of Krishna Consciousness introduced the site to the market
in April 2014 that can accommodate a 187,000-square-foot project.
180 Concord Street - Rendering
180 Concord Street – Clinton Hill-based developer Sterling Town Equities
received demolition permit approvals in May for the 4,995-square-foot
residential development that will replace a single-story warehouse. Initial
88 Schermerhorn Street - Rendering
117 Livingston Street - Rendering
plans were filed last year to erect a pair of 4-story buildings on both the
Concord Street site and adjacent 37 Duffield Street. Plan exam applications were approved in July by the city’s Department of Buildings, but
the Office of Environmental Remediation delayed the permit process due to a required cleanup of the site for which the cleanup plan was
approved in May along with demolition permits. The 5,000-square-foot site was acquired for $4.5 million ($901 per buildable-square-foot) in
an all-cash deal in October from long-time owner Red Rock. One of the last development sites in a corner of Downtown Brooklyn, a bidding
war for the property had reportedly attracted a top offer of $5 million.
Unlike the core of Downtown Brooklyn that allows for mid- to high-density mixed-used development, the R6B zoning for the block and
the one diagonally across restricts new building height to 50-feet, limiting construction in the area that has attracted significant interest by
developers.
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WeWork Navy Yard Facility - Potential Rendering
Brooklyn’s Navy Yard - WeWork Project to Move Forward
The co-working space provider has teamed up in an equal partnership with developers
Boston Properties Inc. and Rudin Management Co. to build the company’s first ground-up
project, while also marking the Brooklyn debut for both developers. WeWork is expected
to take 222,000 square feet as anchor tenant of the 675,000-square-foot development
named Dock 72 at the Brooklyn Navy Yard that is projected to cost $380 million. Construction is expected to begin later this year with an
expected 2017 completion, delivering a design that is amenable to tech tenants. The limitations of other spaces WeWork has leased will be
eliminated, offering 40,000-60,000 square foot floor plates, 14-foot ceilings and open offices to encourage collaboration. In addition, design
plans call for 35,000 square feet of amenities including a health and wellness center, specialty vendors, a massage room, valet bicycle
parking, outdoor terraces, a rooftop conference center, and a basketball court that will be open to all Navy Yard workers.
The new building will be situated between 2-dry docks on a 60,000-square-foot strip of land that extends into Wallabout Bay; and will serve
as a model for future WeWork development across the country. Asking rents are expected to be at least $60 per square foot for what is
anticipated to be the highest-end product in the New York tech market. The project will be the 2nd-largest since the 300-acre complex was
acquired by the city from the Defense Department in 1966; preceded only by Steiner Studios’ larger 25-acre film studio that opened in
2004. Once operating fully, the new 16-story building will support about 4,000 workers which will help recover some of the over 12,000
positions lost following the Navy moving out. In addition, all tenants in the building will pay a living wage to their employees as required by
the agreement between the Brooklyn Navy Yard Development Corporation (BNYDC), making it the first new development in Brooklyn with
such a commitment.
The joint venture project comes just weeks after Mayor de Blasio’s administration announced the $140 million redevelopment of Admirals
Row into a mix of retail and industrial space being led by Steiner NYC, already securing a commitment by Rochester, NY-based Wegmans
Food Market, Inc. to anchor the project in a 74,000-square-foot store. The city has also invested another $140 million into the 17-story,
960,000-square-foot known as Building 77. The repositioning of the former ammunition depot into a hub for private manufacturing and
entrepreneurship is expected to be completed next year.
The Brooklyn Navy Yard reportedly houses over 300 businesses within its 3.5 million square feet of leasable space that is fully occupied; and
is currently undergoing its largest expansion since WWII that is expected to add over 2 million square feet of space. Although the untapped
future potential of the site’s roughly 15-20 million square feet of unused development rights parallels that of the Hudson Yards mixed-use
project which spans nearly 17 million square feet; unlike Hudson Yards, no residential development is planned for the Navy Yard site.
Source:
http://www.globest.com/news/12_1146/newyork/development/TAMI-Tenants-Get-Massive-New-Space-at-Bklyn-Navy-Yard-359516-1.html
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Anticipated Navy Yard Development Boosts Bordering Enclave Activity
Ongoing news of heightened activity at the Brooklyn Navy yard continues to spark development activity in the neighboring areas of Vinegar
Hill and Wallabout. Many developers are not waiting for the several anticipated projects in different phases of planning and development at
the Navy Yard to be completed. Residential development activity is ranging from large projects such as the 434-unit complex along Flushing
Avenue dubbed Navy Green; to smaller projects such as the 25-unit condominium at 47 Bridge Street.
Vinegar Hill (DUMBO border): The small enclave boasts the charm of Belgian-blocked streets lined with brownstone buildings; and while
some of recent residential projects are technically in bordering DUMBO, it has spurred new life into the historic working-class enclave
where until now, time has stood still.
51 Jay Street – The 74-unit condominium conversion project being co-developed by Adam America and
Slate Property Group is currently under construction. Located at the corner of Jay- and Water Streets,
the existing 3-story manufacturing building was acquired in 2013 for $45 million. Upon the expected
2015 project completion the development will total 6-stories as a result of a 3-story vertical expansion.
51 Jay Street - Rendering
200 Water Street – The 15-unit condominium conversion project is currently under construction by
developer Urban Realty Partners and expected to deliver in 2016. The former Brillo factory that later become
part of the Jehovah’s Witnesses’ multi-building complex in DUMBO last traded for $9.25 million in 2014.
Waterbridge 47, 47 Bridge Street – The 25-unit condominium conversion being developed by Greystone
is currently under construction and expected to deliver before the end of the year. The property was
acquired in 2013 for roughly $6.532 million.
200 Water Street - Rendering
Wallabout (Clinton border): The area located to the south of the Navy Yard continues to maintain
a neighborhood feel with streets lined with historic pre-Civil War wood-framed houses. Wallabout’s
commercial history of several commercial food industries has evoked the current growth of food-related
businesses being attracted to the area including Grapeshot Wine & Spirits, Brooklyn Roasters, and Mast
Brothers Chocolates which established outposts in 2013; and Parlor Coffee in 2014.
66 Washington Avenue – A 5-unit mixed-use residential conversion of a 3-story retail/office building.
47 Bridge Street - Rendering
73 Washington Avenue – The currently undergoing conversion of the 4-story commercial building will deliver 7-one bedroom loft units
before the end of the year.
Navy Green – The multi-building complex is being co-developed by Dunn Development Group, L&M
Development Partners Inc., and Pratt Area Community Council. The development team was awarded
the project in response to a request for proposal (RFP) released by the city’s Housing Preservation and
Development (HPD). The 434-unit project consists of both rental and homeownership units for a mix of
income levels, commercial and community facility space, and a shared common green. The nearly full
block site where the former Navy Brig prison has been demolished to make way for new construction
that includes:
•
Navy Green R1, 7 Clermont Avenue – The 12-story, 112-unit mixed-income development was
completed in 2012. The 111,000-square-foot building also houses 6,000 square feet of retail and
community facility space;
•
Navy Green R2, 8 Vanderbilt Avenue – The 12-story, 99-unit condominium development, of which
74-units are designated affordable, began construction last year and is expected to be delivered in
2016. The 113,000-square-foot building will also house 1,600 square feet of commercial space;
•
Navy Green R3, 45 Clermont Avenue – The 101-unit development that was delivered in 2012
spreads across 8-stories and 96,000 square feet.
•
Navy Green Townhouses, 17-35 Clermont Avenue / 14-38 Vanderbilt Avenue – The single-family
townhouses will deliver a total of 23, 3-story units which are scheduled to be constructed in 2-phases.
The 10- and 13-unit buildings are anticipated to be completed in 2015 and 2016.
Source:
http://www.brownstoner.com/blog/2012/12/developers-receive-award-for-navy-green-project/
http://www.dunndev.com/L3/navyR3.html • http://ny.curbed.com/tags/navy-green
Navy Green, R2 - Rendering
Navy Green Townhouses - Rendering
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Boerum Hill - Development Activity
Lending
265 State Street – Co-developers Flank and the Carlyle Group secured $175 million in financing from lender
M&T Bank comprised of a $121.6 million construction loan, a $28.5 million project loan, and a $24.9 million
land loan. The 20-story, condo-hotel development dubbed The Boerum is currently under construction and
expected to deliver next year. The new tower will feature a boutique hotel on floors 3-6 with 128 residential
condominiums spread across 213,181 square feet above. The building’s lobbies, retail space and 40-car
parking will be housed on the 1st- and 2nd floors.
Recently Sold
401 State Street – Manhattan-based non-profit NoVo Foundation has purchased the 3-story, 13,500-square265 State Street - Rendering
foot residential building for $10 million ($740 per square foot) from owner Yosef Streicher. The non-profit intends
to reposition the building into their headquarter location, paying $2.5 million over the asking price due to an overwhelming number of offers
for the property that offered a rare boutique residential conversion. NoVo anticipates that the acquisition will preserve funds in the long term,
planning to relocate upon their 2017 lease expiration at Midtown’s 535 Fifth Avenue (Grand Central). The building has remained vacant since
2013 when last trading for $4.28 million ($317 per square foot) in a purchase from the Daytop Village Foundation.
Project Plans in Progress
73-79 Bond Street – Developer Adam America filed permits last August for the construction of 5 single-family,
almost suburban-style townhouses on the 5-parcel assemblage located at the southern edge of Downtown
Brooklyn at the corner of State Street near Atlantic Avenue. Each townhouse is expected to average about
4,100 square feet spread across 6-stories which includes 2-below grade levels. The project is expected to be
completed by the end of next year, with sales already launched in July. The former 6,000-square-foot parking
lot that can accommodate 12,000 buildable square feet was acquired for $6.05 million (approximately $504 per
buildable-square-foot) in mid-2014.
Source:
http://www.nytimes.com/2015/07/19/realestate/brooklyn-townhouses-suburban-style.html?partner=rss&emc=rss&_r=1
http://ny.curbed.com/tags/265-state-street
73-79 Bond Street - Rendering
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Boerum Hill (cont’d)
Project Plans in Progress (cont’d)
489 Baltic Street – Greenwich Street Equities is planning to construct a 4-story, 9,968-squarefoot hotel project dubbed Baltic Huis pending permit approvals by the Department of Buildings
(DOB) of plans filed last year. The 5,000-square-foot site was acquired in February for $1.6 million
($161 per buildable-square-foot). The 34-key hotel will be the 2nd constructed by the developer
in the Gowanus Canal vicinity, having recently opened the 48-key Union Hotel at 611 Degraw
Street. Other hotels within the vicinity include the 78-key Gowanus Inn & Yard at 645-651 Union
Street that is currently under construction; a 115-key Holiday Inn Express at 625 Union Street;
and the 48-key Hotel Le Bleu at 370 4th Avenue.
489 Baltic Street - Rendering
465 Pacific Street aka 472-484 Atlantic Avenue – The partnership of Avery Hall Investments and
ARIA Development Group broke ground in August on a 7-story, 85,000-square-foot condominium
development that will house 30-units and 15,000 square feet of ground floor retail space. A $34.2
million construction loan was secured from lender JPMorgan Chase for the estimated $55 million
project that is slated for a 2017 delivery. The site which was acquired in July 2014 for $18.025 million,
demolishing an existing single-story commercial structure to make way for the new building. In
March the co-developers negotiated the purchase of approximately 6,300 square feet of additional
development rights from 4-neighboring townhouses, paying a total of roughly $1.415 million for a
combined assemblage cost of $1.944 million ($229 per buildable-square-foot). Although the building
465 Pacific Street - Rendering
has frontage along 3-streets with its entrance on Pacific Street, the retail will face Atlantic Avenue.
In addition to offering the longest length of frontage, Atlantic Avenue has increasingly become a popular shopping thoroughfare.
2-8 Saint Marks Place aka 113-125 3rd Avenue – Barrett Design & Development filed building applications in August for the construction
of an 8-story, 27,163-square-foot residential development at the corner of 3rd Avenue. A total of 13-units will spread across 26,602 square
feet plus 561 square feet of retail space. Demolition permit approvals are pending for the existing single-story commercial structure on
the 3,900-square-foot corner site that the developer purchased for $5.65 million ($208 per buildable-square-foot) in April. Although details
were not released, additional development rights were reportedly acquired from nearby 12 Saint Marks Place. The developer has recently
completed another residential project in the neighborhood at 440 Atlantic Avenue, having sold the 4,756-square-foot retail condo at its base
for $3.25 million in April.
Source:
http://www.brooklynpaper.com/stories/34/9/cg_gowanushotel_2011_3_4_bk.html
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Bushwick - Development Activity
Project Plans in Progress
564 St. John’s Place – Heritage Equity Partners is planning to break ground on a 140-key hotel dubbed The Bushwick Hotel before the
end of the year, having acquired the site from the Rabsky Group in partnership with the Lichtenstein Group for $24 million last May. The
2.3 acre property encompasses a full block bound by Siegel, White, and Moore Streets and Bushwick Avenue. Construction of the hotel is
expected to be completed by the fall of 2017.
In addition to converting existing low-rise structures into office and retail space, the developers are also hoping to construct a new
400,000-square-foot office building. However in order to achieve the required density for the development, sources speculate that Heritage
will submit a special permit application similar to the one they are currently negotiating with the city for their project at 19-33 Kent Avenue in
Williamsburg. If approved, it will allow the developer to replace currently required community space with office and light manufacturing space.
600 Bushwick Avenue – Williamsburg-based developer Cayuga Capital has begun construction on the
6-story, 62,973-square-foot mixed-use development. The former 2-story, 27,720-square-foot garage will
be preserved and repositioned into 10,000-square-feet of commercial space, plus 1,000 square feet of
medical offices and a 12-space parking garage will be housed on part of the 2nd floor. The 64 residential
units will spread across roughly 48,000 square feet on the newly added upper 4-floors featuring floor-toceiling windows. Construction is expected to be completed in 2017.
600 Bushwick Avenue - Rendering
96-100 Himrod Street – Developer Moshe Blum filed permit applications under an entity in August for the construction of a 3-building
residential development on the 3-parcels totaling about 7,000-square-foot. The 3-existing 2-family homes will likely be demolished to make
way for the 4-story buildings that will have a combined total of 15,351 square feet and house 25 residential units. The developer acquired
the site for roughly $2.485 million ($162 per buildable-square-foot) in June, apparently deciding to split the project into multiple buildings to
avoid the otherwise required 13-parking spaces for 25-units within a single building development.
334-336 Himrod Street – Brooklyn-based developer ASH NYC is planning to construct a 5-story,
70,000-square-foot mixed-use development that will incorporate a part of the former Dannenhoffer’s
Opalescent Glassworks building at 330 Himrod Street that had been occupied by a plastic bags
manufacturer after the glass factory shut down. The low-rise garages that flank the factory building will
be demolished to make way for 4- and 5-story glass wings on either side to house 63 residential units,
4,570 square feet of retail space, and 1,570 square feet of community space. The developer recently
secured a 3-year, $21 million construction loan for the 80/20 project from Santander Bank.
Source:
http://www.brownstoner.com/blog/2014/07/renderings-for-a-bushwick-factory-conversion-on-himrod-street/
334-336 Himrod Street - Rendering
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Bushwick (cont’d)
Project Plans in Progress (cont’d)
1290- and 1300 Decatur Street – Developer Rimon Gabbay filed plans in November for the construction
of a planned 21,084-square-foot residential project comprised of 4-buildings that will house 8 residential
units each. The multi-building design was most likely prompted to avoid a 16-parking space requirement
had the units been housed within a single-building. The 2-parcel assemblage was acquired in 2013 for
$495,000 ($23 per buildable-square-foot). Development activity in the area has been sluggish in part due
to several blocks of potential prime real estate being zoned for manufacturing use only.
1290-1300 Decatur Street - Rendering
963 Willoughby Avenue – Willtrout Realty filed permit applications for the construction of a planned 5-story residential development that
will house 63-units spread across roughly 43,000 square feet, 1,500 square feet of indoor and outdoor recreation space on the 1st floor,
and 32 off-street parking spaces as required by current zoning. The 19,600-square-foot vacant lot was reportedly acquired as part of a $5
million, 10-property acquisition in 2011.
810 Flushing Avenue – New renderings were released for the 7-story, 44,260-square-foot residential
rental project being developed by Sam Markovitz of Upper Class Development LLC. Permits filed last
year revealed a 2-story, 6,400 square-foot commercial space; a 9,300-square-foot community facility;
42-units spread across 28,555 square feet; and a 21-car parking garage. The developer was able to
increase the development’s density by taking advantage of the wedge-shaped property’s commercial,
mixed-use zoning that offers a floor area bonus for the added community use space. The corner property
last traded in 2014 for an undisclosed price according to city records.
810 Flushing Avenue - Rendering
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Bedford-Stuyvesant - Development Activity
Project Plans in Progress
Development activity in the vicinity of Broadway Junction appears to be rising slightly in anticipation of the city’s proposed East New York
Rezoning process that is expected to begin this fall. If approved, the rezoning will affect neighborhoods primarily within a 12-block area
west of Broadway Junction within Ocean Hill, as well as the main portion of East New York and Cypress Hills to the east. The rezoning
would modify restrictions that currently limit new developments to low density and prohibits new residential construction along Atlantic,
Broadway Junction, and parts of Liberty Avenue. The new zoning is expected to spur development activity that could open the door to the
potential construction over the next 15-years of up to 7,000 residential units — with many designated as “protected” subsidized housing;
as well as development growth in:
•
Community Facilities - 157,000 square feet to 536,000 square feet;
•
Commercial Space - 669,000 square feet to 1.26 million square feet;
•
Industrial Space - 126,000 square feet to 153,000 square feet, while simultaneously diminishing development of auto-related, hotel,
warehouse and storage space.
Area Projects include:
62-68 Somers Street – South Slope-based developer Aron Herczl doing business under an LLC reportedly filed plan applications for the
construction of (3) 4-story apartment buildings that will each house 8-units; and range in size from 5,082 – 6,885 square feet. It is likely that
the developer opted to divide the project located within the Ocean Hill subdistrict into multiple buildings to avoid the otherwise required
12-parking spaces for 24-units housed within a single structure. The vacant 8,370-square-foot site was acquired last November for $1.52
million ($86 per buildable-square-foot).
1325 Herkimer Street – Queens-based developer Guy Iber is planning to construct a 5-story,
22,000-square foot residential development that will house 32-units with 16-space ground floor parking
as required by zoning. Initial permit applications were filed in February, but disapproved by the city’s
Department of Buildings in April; and new applications have yet to be submitted. The 10,000-square-foot
parcel is located just a few blocks west of the proposed East New York rezoning proposal.
1325 Herkimer Street - Rendering
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Bedford-Stuyvesant (cont’d)
Project Plans in Progress (cont’d)
1134-1152 Fulton Street – Brooklyn investor Joseph Brunner is planning to construct a mixed-use
development that has increased from an 8-story, 119-unit project totaling 108,000-square-feet to an
11-story, 189-unit building since preliminary permits applications were filed in May. Part of the city’s
FRESH program which is designed to bring more food options to the neighborhood, in addition to
including affordable units there will be space designated for a grocery store within the 18,489 square feet
of commercial space incorporated into the project’s design. The site of an existing 2-story, 37,362-squarefoot commercial building traded for $19 million last May.
1134-1152 Fulton Street - Rendering
253 Tompkins Avenue – Exclusive Homes filed plans in June to construct a 6-story, 9,748-square-foot residential development that will
house 11-units on the site of an existing 3-story structure. The 3,200-square-foot parcel located at the corner of Van Buren Street was
acquired last November for $790,000 ($81 per buildable-square-foot); and is located just south of the Lafayette Avenue corridor which offers
the convenience of the Bedford-Nostrand Avenue G-subway line.
822 Lexington Avenue – Developer Donald Brennan filed permits in June for the construction of a 7-story, 44,873-square-foot residential
project on the Bushwick border. The new building will house 62-units plus amenities including a shared roof terrace; and a lower level
35-space parking garage that is slightly above zoning requirements. The property which includes a recently built long-term care facility was
acquired in April for $7.3 million ($163 per buildable-square-foot) from non-profit Cobble Hill Health Center that runs the facility. It has not
been verified if the new building will replace the existing structure or be an addition to create a shared tax lot.
802-806 Myrtle Avenue – A-1 Properties is planning to construct the 8-story mixed-used development that will house 44-residential rental
units and a 5,700-square-foot retail component at the base. Initial permits had been filed in April 2014
revealing a building size of 31,201 square feet which may have changed as building plans have yet to be
finalized. According to city records, the property last traded in January 2014 to 1900 Park LLC for $2.725
million.
936 and 946-948 Myrtle Avenue / 258-264 Throop Avenue – The
Rabsky Group was issued permits to construct the mixed-use
development that has seen a few modifications since initial filings
submitted in October for a 10-story project. The 3-parcel assemblage
will give rise to a shorter 7-story, building that will house 132 residential
units spread across 163,631 square feet; an 8,300-square-foot retail
component; and ground level 107-space parking garage. The existing
structures that include a Key Foods grocery market will be demolished
to make way for the new building on the 30,000-square-foot site that
last traded in December 2014 of $16.5 million.
936/946-948 Myrtle Avenue
Former 10-story Rendering
802-806 Myrtle Avenue - Rendering
88 Walworth Street – Yeshiva Ahavas Israel has filed permits for the conversion of the existing single-story, 5,000-square-foot warehouse
into a synagogue. The religious organization that is headquartered in the vicinity at 12 Franklin Avenue was able to take advantage of the
convenient loophole in the property’s M-1 zoning rules that allows house of worship use as-of-right. In contrast, other community facility
use such as hospitals or medical offices would require a special permit from the Board of Standards. The property located within the Ocean
Hill subdistrict last traded in 2010 for an undisclosed price, and appears to still be owned by the Ballerino family who had acquired it from
Dairy Maid Ravioli Manufacturing Corp; but the recording on city records of a possible sale to the Yeshiva may still be pending.
Source:
http://www.brownstoner.com/blog/2015/06/rendering-big-karl-fischer-designed-mixed-use-building-fulton-street-bed-stuy/
http://ny.curbed.com/archives/2015/07/24/first_look_at_bedstuys_newest_rental_building.php
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1765 Prospect Place - Rendering
1760 Prospect Place - Rendering
Bedford-Stuyvesant (cont’d)
Project Plans in Progress (cont’d)
Prospect Plaza – The long awaited redevelopment of the block-long housing project is picking up steam after a delay of about 15-years
when the city first promised to do the project. Developer Blue Sea Development is constructing the project on behalf of the city’s Housing
Authority (NYCHA) and Housing Preservation & Development (HPD) agencies. Demolition of the existing structure was completed last year.
About 1,500 former residents had been vacated with a promise to be moved back in upon the project’s completion. The construction will
be done in phases creating a total of 364 units of affordable housing with a maximum height of about 6-stories. The first 2-buildings are
slated for a 2016 completion
Phase 1 (1765 Prospect Place) is already rising and will be comprised of 148-units spread
across 4-story, townhouse-style walkups and a 5.5 -story elevator building.
Phase 2 (1760 Prospect Place) will bring an additional 111-units similarly housed within
townhouse-style walkups and an elevator building.
Phase 3 will be a 4.5-story development that will wrap around a courtyard and house
105-units, a 22,000-square-foot supermarket, 12,000-square-foot community facility, and
a rooftop greenhouse.
Prospect Plaza - Site Plan
641 Dekalb Avenue – Queens-based developer Guy Iber is planning to construct a 5-story, 5,515-square-foot
residential development to house 8-units. The roughly 1,800-square-foot site is part of a larger vacant property
owned by the city’s Housing Preservation & Development (HPD); and last traded in 2013 for $100,000 ($18
per buildable-square foot). The property is located just 2.5 blocks from the Bedford-Nostrand G-train station.
740 Dekalb Avenue – Bushwick-based developer Level One Holdings
received building permits in June to construct a 7-story, 25,512-squarefoot residential project that will house 37-units and 19-parking spaces as
required by zoning.
875 Dekalb Avenue – South Williamsburg developer Simon Kaufman has
already begun construction of the 6-story, 23,957-square-foot residential
740 Dekalb Avenue - Rendering
development on the vacant parcel located between Throop Avenue and
Marcus Garvey Boulevard. Permits were issued in May for the project that is expected to reach a linear
height of 70-feet and house 35 residential units, the developer opting to exclude any retail space. The
vacant lot located adjacent to a religious school that formerly served as a basketball court is owned by
Mt. Pisgah Baptist Church. Although details were not disclosed, Level One reportedly secured a lease for
the 9,000-square-foot lot earlier this year.
641 Dekalb Avenue - Rendering
875 Dekalb Avenue - Rendering
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Bedford Union Armory
Crown Heights - Development Activity
Projects on the Horizon
Bedford Union Armory, 1579 Bedford Avenue – It was announced in May that the city is currently seeking a developer to renovate the
structure located between Union and President Streets. Potential uses for the 138,000-square-foot former armory envisioned by developers
range from hotel, business incubator, supermarket or recreation center. Work is expected to begin upon a developer being awarded the
project which will generate jobs, economic activity, and deliver a revitalized life for the 108-year-old armory. And while the anticipated
project received enthusiastic response from area residents, similar hopes for the Bedford-Atlantic Armory at 1322 Bedford Avenue less
than one-mile south remain in limbo.
Plans to redevelop a 50,000-square-foot drill hall within the 2.3 acre complex of the latter armory also known as the 23rd Regiment Armory
stalled despite a $14 million commitment by the city in 2012 to transform the space into “neighborhood-serving uses.” Later it was revealed
that the plan was shelved due to the massive drill hall playing a crucial role as an evacuation center in the event of natural disasters; as
well as an emergency-response center for Hurricane Sandy-type situations. Today the complex’ only sign of life is its service as a homeless
shelter for men in part of the space overseen by the city’s Department of Homeless Services.
Project Plans in Progress
1519-1535 Bedford Avenue – Renderings were released for the planned residential rental development
being constructed by developer Adam America. Located on the southeast corner of Eastern Parkway,
the developer is planning an 8-story, approximately 106,000-square-foot mixed-use development.
Comprised of 14,669 square feet of ground level retail and 133 residential units spread across 91,337
square feet, of which 20% will be designated for affordable housing allowing the developer to take
advantage of inclusionary bonuses. The site of an existing gas station/car wash was acquired earlier this
year for $32.5 million ($306 per buildable-square-foot) from the Wiczyk family; and offers frontage along
Bedford Avenue, Eastern Parkway, and Lincoln Place.
1519-1535 Bedford Avenue - Rendering
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Crown Heights (cont’d)
Project Plans in Progress (cont’d)
505 Saint Marks Avenue – The 8-story, 99,821-square-foot residential project being developed by
Yosi Cohen of Realty Within Reach is nearing completion. The new building will house 147-units and
74-parking spaces as required by zoning which prohibits ground floor retail at the site. The project
is expected to deliver this year and will be the 2nd largest market-rate rental to come online in the
last year, following the 8-story, 66-unit development at 341 Eastern Parkway that opened in 2014. The
development site was acquired in 2011 under an LLC for $4.5 million ($45 per buildable-square-foot);
and the existing 20,450-square-foot commercial structure was demolished in 2012.
505 Saint Marks Avenue - Rendering
906 Prospect Place – Developer Jeffrey Gershon filed permit applications in July for the construction of a 5-story condominium development
that will house 20-units spread across 22,040 square feet. The development’s design, as well as the demolition of the existing 2-story structure,
will require Landmarks Preservation Commission (LPC) approvals since the site is located within the Crown Heights Historic District. Situated
between New York- and Brooklyn Avenues, the vacant lot that offers 80-feet of frontage along Prospect Place, and is located one block from
the Brooklyn’s Children Museum and Brower Park was acquired in 2014 for $3.5 million ($159 per buildable-square-foot).
267 Rogers Avenue – Heights Advisors is currently constructing a 5-story, 112,155-square-foot
residential development on the site of a former St. Ignatius Catholic Church that was shuttered in
2013. Due to current zoning restrictions that limit use to residential, retail space will not be included in
the new building despite the site’s ideal location next to a high school and one-block from a 2/5-subway
stop. Permit approvals were received last year for the 165-unit project that is expected to be delivered
before the end of the year.
267 Rogers Avenue - Rendering
529-531 Park Place – Developer Sterling Town Equities filed permit applications in August for the
planned construction of a 5-story, 8,801-square-foot residential development that will house 8-units.
The vacant 2-parcel assemblage totaling 3,000 square feet was acquired for a combined total of $2.36
million ($268 per buildable-square-foot) in May, paying $1.13 million for 529 Park Place which last traded
in 2013 for $700,000; and $1.23 million for 531 Park Place which last traded in 2007 for $800,000.
730 Franklin Avenue – Owner Shlomi Avdoo received permit approvals in May for the construction of
a 6-story, 10,676-square-foot residential development that is already underway. The new building that is
expected to deliver next year will house 10-units spread across 9,000 square feet with a 1,676-squarefoot retail component at its base. The development site last traded in 2012 for $800,000 ($75 per
buildable-square-foot).
730 Franklin Avenue - Rendering
Source:
http://www.citylandnyc.org/tag/bedford-atlantic-armory/
http://www.brownstoner.com/blog/2013/10/rendering-change-of-plans-for-rental-at-505-st-marks-avenue-in-crown-heights/
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Red Hook Innovations Center - Site Rendering
Red Hook Innovations Center
Italian developer Est4te Four is currently marketing an up to 49% stake in the planned roughly 1.1 million-square-foot project, seeking a
partner willing to invest a minimum of $100 million in the project that intends to foster the development of new, cross-industry innovations
in a campus-like environment located on the waterfront. The complex will span 6-parcels on the west side of Ferris Street between Coffeyand Sullivan Streets, Est4te Four having invested $61 million over the last 3-years to complete the acquisition of the assemblage.
The complex spans 5-city blocks including 44-62 Ferris Street, 64-82 Ferris Street, 219 Sullivan Street, and 202 Coffey Street. Most of the
project will be new construction, but the developer plans to preserve key parcels including a former printing plant for the Daily News and
an historic 3-story, 122,000-square-foot factory complex that was purchased in 2012 for $11.8 million ($97 per square foot) will be renovated
into a fashion/art/music event space. The project is expected to be developed in phases over 5-years at a total cost of $400 million; and
could break ground next year when current leases at the existing properties are set to expire.
It had been previously reported that the developer is planning to design 4 of the new buildings without basements at an elevated height
of 3-feet above where existing buildings currently stand due to the site’s location along the waterfront. Structural materials such as paned
windows typical of older factories and brick façades on the lower levels will blend with the current aesthetic of the site’s structures,
adding multi-level glass additions above. The buildings are expected to range in size from 215,000-300,000 square feet; and offer a mix of
office space on the upper levels and retail below with courtyards and plazas scattered throughout the complex. Residential and/or hotel
development will not be included in the project due to a rezoning that would be required since most of Red Hook‘s existing zoning only
allows for industrial use.
The after effects of Hurricane Sandy has prompted both the city and state governments to allocate $100 million toward strengthening Red
Hooks shoreline to help mitigate the reoccurrence of the severe damage incurred in 2012. A request for proposal (RFP) was released by
the NYC Economic and Development Corporation (NYCEDC) on behalf of the Mayors’ Office of Recovery and Resiliency (ORR) and the City
of New York in search of a consulting agent that would conduct a feasibility study for an integrated flood protection system. The proposed
project will reportedly occupy a total of 370 acres at an anticipated cost of roughly $200 million, of which the city and state officials are
setting aside $50 million each for preliminary steps.
The anticipation of the large-scale redevelopment has led some industry sources to predict that the small, square-mile community which
currently revolves around the loading of freight onto trucks may be on the threshold of a significant transition; and for the first time will be
tested as an office market where subway services are currently lacking. While an anchor tenant has yet to be secured in order for the project
to move forward, Est4te Four is hoping to attract tenants from the fashion, music and technology sectors.
Est4te Four is already working on the conversion of a nearby warehouse at 160 Imlay Street. The 70-unit, 6-story condominium is expected
to deliver before the end of the year. Over 60% of the units are reportedly in contract at prices averaging over $1,100 per square foot.
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Red Hook Innovations Center (cont’d)
Red Hook Innovations Center - Site/Project Renderings
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Select Lease Transactions
Office
Address
Neighborhood
Sq. Ftge
Tenant
Industry City
Sunset Park
60,000
Milk Studios (newly launched Co-working division)
93 3rd Street
Gowanus
40,135
Genius
47-55 Willoughby Street
Downtown Brooklyn
20,000
International Charter School (sublease)
81 Willoughby Street
Downtown Brooklyn
7,000
LIS Solutions
Retail
Address
Neighborhood
2149 Ralph Avenue
Bergen Beach
40,000
Fairway Market
202-206 Kent Avenue
Williamsburg
18,000
Trader Joe’s
227 4th Avenue
Park Slope
16,700
Blink Fitness
300 Schermerhorn Street
Downtown Brooklyn
3,600
Seoul Bistro
210 Joralemon Street
Downtown Brooklyn
3,000
Maison Kayser
193 Bedford Avenue
Williamsburg
1,000
Schmackery’s
189 Court Street
Cobble Hill
The Mid-Quarter Brooklyn Report is produced by:
Jamie Mason | Director of Marketing & Research
ABS Partners Real Estate, LLC
Sq. Ftge
900
Tenant
Jacadi Paris
For More Information Please Contact:
212.400.6060
•
www.absre.com
200 Park Avenue South, 10th Floor, New York, NY 10003
We Build Partnerships That Last
Although the information furnished is from sources deemed reliable such information has not been verified and no express representation is made nor is any implied as to the accuracy thereof. Sources: CoStar Group, The
Real Deal, Crain’s New York Business, The New York Times, New York Post, New York Yimby, and Commercial Observer