Construction Starting Next Year on 2 Downtown High-Rises

The big development news this morning is that long-held plans for two Downtown Brooklyn residential skyscrapers, 388 Bridge Street and Willoughby West, are being dusted off, and construction is supposed to start on both next year. An article in the Journal notes that the two buildings are slated to be the tallest in the borough. Stahl Real Estate says it intends to start building 388 Bridge Street, rendered at right, early next year. The developer recently received financing for the 590-foot building, which is now being planned as a condo-rental hybrid (234 rental units, 144 condos) rather than a straight-up condo. (As we reported a couple years ago, a brownfield investigation at the 388 Bridge construction site probably played a role in delaying the building’s construction.) Meanwhile, Avalon Bay says it expects to start building its 596-foot Willoughby West rental, which will have 861 apartments and rise at Willoughby and Bridge streets, late in 2012. Avalon recently purchased another parcel on Willoughby Street for the development, but there hasn’t been any demolition action on the block yet.
Developers Launch Battle Of Brooklyn [Wall Street Journal]

23 Comment

  • Japan did this in the late 80′s.

    ***Half Peak Comps Euroding***

  • Has anyone noticed that this will result in a truly grotesque degree of density in the immediate few surrounding blocks?

  • Doubt this is going to be affordable housing in any sense of the word. Mind’s well just jam it into the gosh darn river

  • Doubt this is going to be affordable housing in any sense of the word. Mind’s well just jam it into the gosh darn river

  • It will be good to have the residential traffic in the area. This spot can use some density. The 388 Bridge street site is a big hole, and across the street are the vacant buildings waiting for the Avalon build. With the concentration of subway and bus transit this is a good place to build dense.

  • BHO – No they didnt

    Brenda – this is literally smack dab in the middle of “downtown brooklyn” there is absolutly no better place for this kind of development than here virtually every single subway line in the city passes nearby and would be 1 or 2 stops to Manhattan

    • Then what made their economy collapse and deflate for the last twenty years and counting?

      ***Half Peak Comps Euroding***

      • Massive lending, which resulted in huge bubbles in all assets including equities and real estate (just like what happened here – on a somewhat smaller scale leading up to 2007).
        Now you may beleive that Brooklyn RE is overvalued but new developments are simply not over financed. You cannot get Banks or other institutions to lend money without significant protections for the lender and tremendous equity investment by the developers.

        • “Massive lending, which resulted in huge bubbles in all assets including equities and real estate (just like what happened here – on a somewhat smaller scale leading up to 2007).”

          I rest my case.

          “You cannot get Banks or other institutions to lend money without significant protections for the lender”

          Mmm hmm. Protections from exactly where? Equity from exactly where?

          Sayonara!

          ***Half Peak Comps Eurding***

        • “Massive lending, which resulted in huge bubbles in all assets including equities and real estate (just like what happened here – on a somewhat smaller scale leading up to 2007).”

          I rest my case.

          “You cannot get Banks or other institutions to lend money without significant protections for the lender”

          Mmm hmm. Protections from exactly where? Equity from exactly where?

          Sayonara!

          ***Half Peak Comps Eurding***

    • Presuming, that is, that the ideal for downtown Brooklyn’s future is to become a metastatic outgrowth of downtown Manhattan…

  • There used to be affordable housing in the area. Until our building was “condemned” in 2004, I lived near the corner of Bridge and Willoughby for over 5 years, paying $800/month for a whole floor.

  • Good news, DT Brooklyn has the transportation and retail infrastructure to support these developments and many more. Assuming most of the future renters and condo owners are childless….

  • Anyone know what the parking minimums or maximums are going to be? All the foot traffic and density will be a boon for Downtown BK – as long as our dumb politicians (i.e., Marty and anyone from Bay Ridge) don’t try to cram another 10,000 cars into the area.

    They should build these buildings without any parking spaces whatsoever.

    C:

  • “They should build these buildings without any parking spaces whatsoever.”

    Oh yeah, that’s going to happen. Yep. Sure.

  • BHO – I know you know the answer to your silly questions. The equity comes from the investors (owner/developer) and the protection is the mortgage which gives the lender a lien against the property in the event of a default.

    During the Japanese bubble (and our own) Banks (and other financial institutions) were loaning money in EXCESS of the equity value of the property based on models, assumptions and fraud. This is no longer happening and in fact lenders have gone the other way, making loans to the most conservative values possible and requiring that developers invest significant equity (often up to 50%) in order to close the loan. Obviously this reduces owners/developers leverage and makes development more expensive and risky for developers (and less risky for the lenders)

    In short, the development of these buildings is NOTHING like the Japanese in the late 80′s (or the US in the mid-late 00′s) – doesnt mean that they wont lose value or be money losers – it just means that it is nothing like the bubble you cited.

    You have been predicting the imminent collapse of the NYC RE market for at least 5 years that I am aware – you really ought to stop; not because eventually you wont be right, but because you have been wrong for so long as to make your predictions meaningless.

  • BHO – I know you know the answer to your silly questions. The equity comes from the investors (owner/developer) and the protection is the mortgage which gives the lender a lien against the property in the event of a default.

    During the Japanese bubble (and our own) Banks (and other financial institutions) were loaning money in EXCESS of the equity value of the property based on models, assumptions and fraud. This is no longer happening and in fact lenders have gone the other way, making loans to the most conservative values possible and requiring that developers invest significant equity (often up to 50%) in order to close the loan. Obviously this reduces owners/developers leverage and makes development more expensive and risky for developers (and less risky for the lenders)

    In short, the development of these buildings is NOTHING like the Japanese in the late 80′s (or the US in the mid-late 00′s) – doesnt mean that they wont lose value or be money losers – it just means that it is nothing like the bubble you cited.

    You have been predicting the imminent collapse of the NYC RE market for at least 5 years that I am aware – you really ought to stop; not because eventually you wont be right, but because you have been wrong for so long as to make your predictions meaningless.

  • Actually maybe the ideal is a very dense urban core with residential, commercial and retail all operating in an area where it is easily served by mass transit, and utilize economies of scale so as to reduce our societies environmental footprint and have things be more efficient and cost effective?

  • couldn’t happen to a better nabe!

  • Tall buildings in downtown Brooklyn is fine, especially considering all the subway lines that are already there. My only MAJOR concern is the fact the streets in downtown Brooklyn are narrow – one way streets. These tall towers are going to create sunless canyons, similar to downtown Manhattan.

  • Too bad for the condo owners at the Bell Tell facing Willoughby! Their sun will soon be eclipsed by a mountain of transplants hehe.