Developer Revealed, Almost Doubles Offer for Pineapple Walk Buyout -- Would You Take It?
The mystery developer offering big bucks to build a tower along Brooklyn Heights’ Pineapple Walk dramatically upped their ante this week — to the tune of $130 million — and revealed their identity. The firm is none other than luxury residential developer Anbau Enterprises. But we won’t fault you if you’ve never heard of them — the company’s current…
The mystery developer offering big bucks to build a tower along Brooklyn Heights’ Pineapple Walk dramatically upped their ante this week — to the tune of $130 million — and revealed their identity.
The firm is none other than luxury residential developer Anbau Enterprises. But we won’t fault you if you’ve never heard of them — the company’s current high-profile projects are all in Manhattan, mostly on the Upper East Side or in Chelsea.
Anbau specializes in the luxury condo market — with buildings ranging in size from seven to 34 stories and in a range of architectural styles — and they seem to have set their hearts on joining the Brooklyn Heights condo boom.
What Anbau Wants For Pineapple Walk. And What They’re Offering
The developer hopes to build a 40-story condo tower on the block-long strip of land running from Cadman Plaza West to Henry Street. It’s currently owned by the shareholders of Whitman Owner Corp., members of the co-op next door at 75 Henry Street.
If they agree to the sale and construction of Anbau’s tower, shareholders would benefit directly from the sale. When the offer was $75,000,000, the Brooklyn Eagle reported that shareholders would each receive 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 just north of the building.
Now, depending on the deal, those numbers might not change. But now that Anbau has offered $130,000,000 for the site — an increase of 73 percent — it makes sense to suspect that individual payouts could increase to something more along the lines of $200,000 to $450,000.
That sum may not be able to buy you a brownstone, but it’s not a number to scoff at.
The Downsides of Building a Tower Along Pineapple Walk
Not everyone’s a winner if this project goes through. Half of the residents in the neighboring tower at 101 Clark Street would have their views blocked by the new development. And they wouldn’t get a cent of the money.
A quarter of the 75 Henry Street units would also have their views blocked. But with the buyout, they have other consolations.
But at a meeting organized last week to try and convince 75 Henry Street owners to not move forward with exploring the offer, some made the more philosophical argument that the neighborhood is already reaching maximum capacity for new development and that the Pineapple Tower would hurt the ‘hood.
“The High Street and Clark Street subways are packed, our sewage and electrical lines are decrepit, there aren’t enough seats in our school, [and] parking is impossible,” said Roberto Gautier, president of the Community Affairs Committee at 140 Cadman Plaza West, according to the Brooklyn Eagle.
The 75 Henry Street residents are voting by Friday on whether to continue exploring the offer.
But if the choice was yours — to get a cash payout and a tower next door — where would you stand?
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well – They voted it down decisively!
I am surprised that the issue here seems to all about what shareholders will “gain” because clearing thinking tells me that they might actually stand to lose — for example, the stores provide the a pretty penny in monthly income for the building owners – what would happen if the building were to lose 1M a year in income until the construction is completed, the maintenance would surely go up – any accountant ( or phone app) can do a forecast and come up with the potential numbers — THE MAINTENANCE WILL SKYROCKET – for the maintenance not to go up, the coop would need to distribute less thats what the “possible” money they are dangling in front of the shareholders, and we’re talking about a limited amount of money. Would this be a 421-a project? The current administration is pushing hard to reach a housing goal, so much so, that NYC is like the Wild West for developers, with ease they are able to acquire all sorts of zoning variances in exchange for added height – build a school in the bottom of the building, add 20 floors, for each additional 10% of “affordable” housing, add 20 floors, build and maintain a public seating plaza, add 20 floors. There is no limit to the size of the project once the property passes hands. And speaking of passing hands, the developer is promising the moon right now – control of the stores, use of their health club ….. it’s all hugs and kisses, anyone who has been thru a courtship will tell you that once the hunt is over so are the kisses, hugs and promises. And what if the project is sold before it’s built – something that happens every day in the development world, what will the coop do, do they have limitless funds to litigate? Where will that money come from?
Why the rush? A developer ups their offer, why are they bargaining against themselves? Maybe because 421-a is set to expire and they want to get in under the wire? Maybe some of there questions should to be answer BEFORE any voting takes place because there is a hubris in action here that is very scary.
I would not. Yes, a pile of cash is very tempting. But the negative impact this would have on the neighborhood outways that.
outweighs
And everyone’s need, or greed, will outweigh the preservation of the neighborhood. I don’t see how they walk away from this, especially with the stakes raised 50%.
A young couple moved into our building after leaving their Prospect Heights apartment, a floor of an old brownstone that they paid their meager life savings for. They swore they would never leave for the sake of Atlantic Yards. How about $1,000,000? Well that is different. No regrets.
It is not just the upfront money (which is enough for most people) but when coupled other perks (reported above) that really make this compelling (financially). And you don’t have to move.
Hell to the yes!!! Couple of hundred grand in my pocket AND money in the coffers of the building so no assessments or maintenance increases for years! AND, finally some good stores on Pineapple Walk, which is a hilarious embarrassment right now…
Here is what I heard: ZERO tax as long as you live in the apartment. Capital gains on the winfall if you sell and leave….