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The Boerum Hill post office, which is relocating from 542 Atlantic Avenue, will not be moving into a newly renovated warehouse at 594 Dean Street, across the street from a big piece of Atlantic Yards/Pacific Park, after all. A few weeks ago, Crain’s reported that a coworking company, Industrious, had signed a lease for a 19,000 square foot space at the Dean Street warehouse, pictured in the rendering above.

So what happened to the post office? Rob Perris, District Manager for Community Board 2, told the Atlantic Yards Report the postal service switched plans because it “discovered belatedly that the proposed location isn’t in 11217.” (Seems kind of strange the post office didn’t know the zip code.) We’ll keep you posted when we hear what the new location will be.

Coworking Space Coming at 594 Dean Street (Updated: No Post Office) [AYR] GMAP
594 Dean Street Coverage [Brownstoner]
Photo by Google Maps

Update: This story originally said the post office would be moving to 290 Flatbush Avenue in Park Slope. The owner of that retail condo, Janet Yagoda, contacted us to say our story is incorrect. When we asked her if she is talking to the post office and a lease has not yet been signed, she said “no comment.”

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A group of developers yesterday paid $33,700,000 for the former Schlitz Brewery at 95 Evergreen Avenue in Bushwick. The Commercial Observer first reported the sale of the five-story, 170,000-square-foot brick factory between Melrose and George Streets, across the street from the gigantic Rheingold Brewery redevelopment project.

It was the first sale of the property in more than 30 years. In the past year or so, developers have pounced on property in Bushwick, which is teeming with construction. Somewhat surprisingly, buyers Hornig Capital Partners, Savanna and Chelsea Village Associates have no plans to turn the industrial property into apartments, according to an agent with Berko & Associates, which brokered the deal.

The building is already being used for light manufacturing and distribution by a variety of tenants. The buyers plan to empty it and convert it to “creative loft office space” and retail with a $20,000,000 renovation. The top floor, which has 35-foot ceilings and large windows that let in a lot of light, may become an entertainment venue, said the story.

Schlitz built the factory in 1950 to house its New York canning and bottling operation, but the Milwaukee-based brewer had moved out of the building by the late ’70s. The last owner, Moshe Gotteman, bought it in the early ’80s and has been renting it out ever since. Above, a rendering showing how the factory could be adapted for office and retail space.

Hornig, Savanna Buy Original Schlitz Brewery for $33.7 Million [NYO] GMAP
Rendering by Fogarty Finger Architecture PLLC via NYO

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RedSky Capital set a record when it paid triple the highest sale price ever per buildable square foot for two retail properties on Bedford Avenue close to the L train. The firm bought 184-186 and 204-206 Bedford Avenue for about $40,000,000, reported Crain’s.

The sale, which closed recently, worked out to be about $3,200 per buildable square foot and $2,500 per buildable square foot for each property. It’s also “double the highest sale in Manhattan for the year,” said the story.

The firm is likely to add floors to the existing buildings, which are wider than average at more than 40 feet. The building at 184 Bedford is right at the corner of North 7th and houses Dunkin’ Donuts. Above, 204 Bedford Avenue in 2012.

Williamsburg Site Closes for Record Sum in 2014 [Crain's]
Photo by Christopher Bride for PropertyShark

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A socioeconomic shift has led to Brooklyn becoming “Manhattanized,” according to a Massey Knakal third quarter recap and two reports we received in our inbox last night. This is not the first time the real estate firm has used that word, but now it goes into much more detail about it and forecasts the trend will continue.

The firm doesn’t see any slack coming at the end of the year. “We expect dollar volume in 4Q14 to exceed 3Q14,” and rents and prices to continue to increase, said one of the reports.

The reports outlined three reasons for the continued “Manhattanization” of Brooklyn:

• Big time institutional investors jumping into the market
* New, higher quality, bigger building stock
* Price appreciation in Williamsburg and other areas has closed or exceeded the Manhattan gap (more…)

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Three big developers have snapped up a crumbling Williamsburg factory for $18,300,000, Crain’s reported, paying a near-record price in hopes of building condos on the site. Adam America, Naveh Shuster and Slate Property Group recently bought the large, L-shaped property at 304 North 7th Street. It faces the BQE and has close to 200 feet of frontage on both Meeker Avenue and North 7th Street, for a total of 22,325 square feet.

The final sale price works out to $432 per buildable square foot, for a property that could accommodate up to seven stories and 60,278 square feet of development. The lot last changed hands for $9,450,000 two years ago, meaning that the previous owners flipped it for nearly twice what they paid.

The developers are confident about the condo market, an exec from Slate said. Condos in Williamsburg are relatively scarce, with 256 condos in development versus 3,725 rentals, according to TerraCRG data quoted in Crain’s. TerraCRG brokered the deal.

The development trio is also working on several other projects in Brooklyn, including large developments at 535 4th Avenue, 470 4th Avenue, and 275 4th Avenue, as well as a six-story rental in the Broadway Triangle. And just a block away, Adam America is  building two seven-story buildings housing 169 units at 247 North 7th Street

Williamsburg Warehouse Fetches Near-Record Sum [Crain's]
Adam America Coverage [Brownstoner]

Photo by Christopher Bride for PropertyShark

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Spruce Capital Partners wants to flip the recently opened Colony 1209 in Bushwick, asking $81,500,000 for the five-story luxury rental building at 1209 Dekalb Avenue, according to The New York Observer. Spruce bought the 127-unit development in April from developer Read Property Group for $58,000,000. Rents are high for Bushwick, ranging from $1,775 for a studio to $2,975 for a two-bedroom at Colony, where amenities include a “speakeasy,” a gym, screening room, common roof terrace and a shared backyard.

The building’s marketing team has caught some flak for the name of the building and its marketing copy, which bills the development as “homesteading, Bushwick-style” and a place where one can find “like-minded settlers.” The building is located in an area of Bushwick that has been densely residential for more than 100 years, and is lined with 19th century row houses and mansions, not a “vibrant industrial setting,” as the copy claims. Massey Knakal is marketing the 120,000-square-foot building, which has 41 parking spaces and 12 years left on a 421-a tax abatement.

Controversial Bushwick Rental Building Hits the Market for $81.5 Million [NYO] GMAP
1209 Dekalb Avenue Coverage [Brownstoner]
Image via Bushwick Daily

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A gas station at 1508 Bushwick Avenue, shuttered and in foreclosure, is for sale. Auctions for the property were scheduled three times in 2012 but there is no record of a sale since 2007, when it traded for $1,250,000.

It sits on a major thoroughfare with heavy traffic, catty corner to the Bushwick Aberdeen L stop. On the empty lot across the street, Scarano Architects is designing a storage facility.

Metro Industrial Realty Inc. is repping the site, according to a sign on the property, but we couldn’t find a listing or price online.

The lot is 10,000 square feet with only that much buildable square feet. It is classified as a toxic site, according to PropertyShark. Zoning is C8-1 (auto-related commercial and industrial), and housing is not permitted.

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The long-stalled apartment development turned parking lot at 510 Driggs Avenue in Williamsburg sold for $25,000,000 in September, according to public records. Last month, we published this rendering for the site designed by ODA Architecture, which apparently cannot get enough of unevenly stacked boxes.

The buyer is developer DHA Capital, according to the deed. Curiously, Crain’s reported in September that a different developer, Alliance Private Capital Group, said it had purchased the site for $35,000,000.

A development as large as 70,0000 square feet could be built on the property between North 8th and North 9th streets. That works out to $357 a buildable square foot for the DHA deal, or $500 a buildable square foot for Alliance — which would be one of the highest prices ever paid for a Williamsburg development site, according to Crain’s.

ODA Releases Cube-Happy Design to Maximize Light, Air in Williamsburg Building [Brownstoner] GMAP

Rendering by ODA Architecture

185 Flatbush Ave rendering

A Mobil gas station at 185 Flatbush Avenue Extension in Downtown Brooklyn is now on the market and asking $27,000,000, which shakes out to $425 per buildable square foot, Crain’s reported. Zoning allows a building as large as 63,400 square feet on the triangular site bounded by Johnson and Gold streets. With an affordable housing bonus, a development could be up to 76,000 square feet and house 75 apartments.

Any developer who purchased it would likely build condos or a hotel to justify the asking price, Crain’s pointed out. Most likely a developer would have to decontaminate the site as well before starting construction. CPEX, which is marketing the property, included the rendering above to show what a potential development there could look like.

The 6,300-square-foot plot, which is across the street from the Oro condos at 306 Gold Street, last changed hands for $604,918 in 2011, according to public records. So this is quite a leap.

Downtown Brooklyn Mobil Station Hits Market at $27 Million [Crain's]
Rendering by Montroy Andersen Demarco via Crain’s

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Developer Madison Realty Capital has snapped up a factory in Clinton Hill for $23,500,000, and may be planning rentals or condos. Although the building at 551 Waverly Avenue is on one of those industrial looking blocks between Fulton and Atlantic near Hot Bird, it’s zoned for residential. The firm hasn’t yet revealed its plans, according to The Real Deal and The New York Daily News, which both wrote about the sale. The current tenant is a 68-year-old kosher bakery that has occupied the building for more than a decade, said the Daily News.

The three-story building (which looks like two) has about 43,000 square feet, but more than 90,000 square feet would be allowed. It dates from 1915, according to city records. It has 90 feet of frontage on the street, so we could imagine stores on the ground floor would work.

Do you think this sale will start a transformation of this corner of Clinton Hill into apartment buildings?

Real Estate Developer Buys Beloved Clinton Hill Kosher Bakery for $23.5 Million [NY Daily News]
Madison Realty Capital Buys Brooklyn Factory Site for $23.5 Million [TRD] GMAP
Photo by Christopher Bride for PropertyShark

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Italian developer Est4te Four — the same folks behind gorgeous and fast-selling 160 Imlay — closed on $33,000,000 worth of Red Hook properties last month, and now we have renderings of what they plan to do with it, courtesy of New York YIMBY. They intend to convert the large brick warehouses on Coffey and Ferris Streets to offices and build new five- and six-story buildings with brick on the bottom and glassy top floors, according to the rendering.

They want to demolish the site’s “less attractive” warehouses, such as the Daily News’ old printing press building. NBBJ is designing the project, which is bounded by Coffey, Ferris and Wolcott Streets and the waterfront. It will also include a waterfront promenade. Altogether it will have 1.1 million square feet of office space.

Click through to see more renderings of the office development. What do you think of the design?

Revealed: Est4te Four’s 1.1 Million Square Foot Red Hook Office Redevelopment [NYY]
Est4te Four Buys up More Red Hook Warehouses, Plans Office Conversions [Brownstoner]
Renderings by NBBJ via New York YIMBY

(more…)

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As anyone strolling the streets of Brooklyn might guess from the frenzied pace of building in the borough, commercial real estate in Brooklyn has reached new heights. Institutional investors, big players previously interested only in Manhattan, are now buying and selling in the borough, and the dollar volume of commercial sales in the first six months of this year is nearing the numbers for the entire year of 2013, according to a story in The Real Deal. It’s the “Manhattanization of the investment sales market,” according to a Massey Knakal executive quoted by the paper.

The number of deals increased dramatically in the first six months, with the dollar volume of deals completed equal to $3,400,000,000 — vs. $3,800,000,000 for all of 2013, according to numbers from Massey Knakal quoted in the story. There were 1,086 commercial sales in Brooklyn in the first six months of this year, an increase of 14 percent over the same period in 2013.

Not surprisingly, most of the activity was in Williamsburg, where 31 development sites traded hands in the first six months. But, surprisingly, Bed Stuy was hot on its heels, with 27 sites changing hands. Greenpoint hit third place, and Crown Heights was fourth, with 18 deals.

The average price of a deal was $3,000,000, according to TerraCRG. But there were some big sales above $30,000,000 — TerraCRG estimates 25 or 30 such deals will have closed during the first six months of the year. (In 2011, there were only three deals above $30,000,000.)

The sale of a stake in Atlantic Yards to Greenland and Fort Greene’s 470 Vanderbilt topped the list of the borough’s biggest deals — click through to the story to see the 10 biggest. Sales are still booming, according to sources, but running out of property or new restrictions concerning tax abatements or inclusionary housing could put a damper on the market, said The Real Deal.

One thing developers are not worried about is rising interest rates. “There is still so much money out there. The market will continue. I don’t think there are any clouds on the horizon,” investor Stephen Steiner of Stratus Capital Advisors told the paper.

Commercial Sales Catch the Brooklyn Fever [TRD]