Brooklyn Heights Development Condo Pineapple Walk Cadman Plaza Whitman

Residents of 75 Henry Street in Brooklyn Heights face a dilemma — one that’s increasingly affecting all Brooklyn residents. Do they cash in on a big development deal or keep their property the way it is?

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Details of the Deal

An unnamed developer has offered “in excess of $75,000,000” for a co-op-owned strip of low-rise retail running along the Pineapple Walk, reported the Brooklyn Eagle.

The developer plans to build a 40-story condo tower at the site, which runs through the block from Cadman Plaza West to Henry Street — separated from the co-op at 75 Henry Street by an existing playground and courtyard.

In exchange, shareholders in Whitman Owner Corp. — members of the co-op which owns the site and rents out the existing storefronts — would benefit directly from the sale, each receiving anywhere from $120,000 for studio owners at 75 Henry to $260,000 for those owning a three-bedroom and more for those who live in townhouses in the development, according to the Brooklyn Eagle.

Additionally, retail space built into the base of the new tower would continue to be owned and rented out by Whitman Owner Corp.

Brooklyn Heights Development Condo Pineapple Walk Cadman Plaza Whitman

A Difficult Decision

A number of Whitman Owner Corp. shareholders have concerns, ranging from the potential loss of light and open space to the possible closure of the Park Plaza Diner on Pineapple Walk to the pitfalls of “more one-percenters moving into the neighborhood,” as one resident interviewed by the Eagle put it.

The other businesses in the strip include a grocery store, a toy store and a pet store.

It’s clear that the co-op would get big bucks from the sale, but a skyscraper rising next door is bound to impact current residents’ quality of life — the co-op board urged residents to consider the effects of such development, both in terms of construction noise and dust and a permanent loss of light and space.

At least the residents of 75 Henry Street have a say in the development decision. Residents of 101 Clark Street, the middle-income apartment building next door, could have an equal loss of light, blocked views, and construction hassle — but without a cent of the cash.

“I have to admit, when I got the email from our board of directors about the deal, my stomach just went down,” one long-time resident of 101 Clark Street, Martha Rowen, told Brownstoner. “What’s going to happen to all these small businesses?” Rowen lamented, gesturing to the storefronts along the Pineapple Walk. “I hope it won’t go through. I’m calling Steve Levin.”

Influential local preservation group Brooklyn Heights Association has already come out against the proposal, telling the Brooklyn Eagle that they will encourage members to reject the deal.

Would a new condo tower put a strain on existing neighborhood infrastructure? The nearby Long Island College Hospital closed its doors in 2013, and overcrowding at local elementary school P.S. 8 has turned into a hot-button rezoning debate. Even more condos attracting more residents would not be smart city planning, some argue.

Brooklyn Heights Development Condo Pineapple Walk Cadman Plaza Whitman

The Latest in a Trend of Developer Offers

This is just the latest developer proposal offering money and commercial condo space in exchange for the ability to build sky-high residential towers. Just two blocks away, the current location of the Brooklyn Heights’ public library branch is caught in a heated debate over a similar offer from developer Hudson Companies.

Gas stations, laundromats, churches, assisted living facilities, hospitals, movie theaters and wood frame houses are also being transformed into apartment buildings as property values soar in Brooklyn.

Last year, the owner of Junior’s Cheesecake, Alan Rosen, entertained offers of $20-45,000,000 from developers who wanted his site for a new tower — some of the offers included permanent space for the iconic restaurant. Ultimately, he decided not to sell.

Shareholders have until January 15 to make up their minds and vote on the offer.

Brooklyn Heights Development Condo Pineapple Walk Cadman Plaza Whitman

Comparing the Pineapple Walk and Heights Library Deals

Folks caught up in the nearby Heights Library debate — several of whom live at 75 Henry, according to the Eagle — will be very interested in how this deal mimics and diverges from the plans for 280 Cadman Plaza West. In many ways, the model for the deal is similar — a developer would buy the site to build market-rate condos with commercial space at the base that’s owned by the original owner.

Where things most notably diverge? The price tag.

The proposed purchase price for the retail strip on the Pineapple Walk is $21,000,000 more than what developer Hudson Companies has agreed to pay the city for the better-situated library site just two blocks away. But the Pineapple Walk parcel is larger, and Hudson is throwing in the price of hosting a interim library and building off-site affordable housing.

[h/t: Brooklyn Eagle | Photos by Barbara Eldredge]

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What's Your Take? Leave a Comment

  1. What they should do is lease it to a developer. A ground lease could fund maintenance and taxes for the co-op for the long-term, while retaining ownership of the site. Ideally they would structure it with some upfront payment to be distributed to the co-op owners, and then ongoing rental stream that would be sized to fund ongoing taxes, and common charges. Developer couldn’t do condo on a ground lease though (would have to be co-op, condop, or rental).

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