We’ve been wondering what this space would be since the sign above appeared at 306 Malcolm X Boulevard months ago. It looked like a restaurant but we heard it was a real estate development company. Lo and behold, it is — Boaz Gilad’s latest, in fact, Brookland Capital. (He is president.)
Looks like Gilad may have bought the building. In January, it sold for $920,000 to an entity called 306 M X B Realty Corp. When we dropped by recently, there were a dozen or more guys milling around inside a narrow office. A few doors closer to Decatur, construction was under way on a reception area and conference room, below. The reception desk is made of a wood salvaged from old beams, and there is a huge conference table and a chandelier in the back of the space.
A report from nonprofit Cause of Action charges that Forest City Enterprises has received huge government subsidies in exchange for political contributions, The New York Post was the first to report. However, the report fails to show a direct cause and effect. Even Atlantic Yards Report, which has been critical of the group’s Atlantic Yards Development, said the findings were a little too simplistic. “It should come as no surprise that we support candidates whose policies promote economic development and job creation,” said a spokesman for Forest City quoted in the Post. “However, to suggest or imply a direct connection between this support and our opportunities as a company is baseless and defamatory.”
Silvershore Properties, a Manhattan-based developer, recently picked up four Brooklyn buildings over the last three months that they’re planning to renovate and reposition. This spring Silvershore purchased 278 Dean Street, between 3rd Avenue and Nevins Street in Boerum Hill, for $1,300,000. It’s an 8,000-square-foot, four-story building with eight units. They also bought 219 13th Street, between 4th and 5th avenues in Park Slope, for $5,250,000. That one’s a 22,000 square-foot, six-story building with 25 units. The other two properties closed in June. They are 115 Atlantic Avenue, between Henry and Hicks streets, and 32 Garnet Street, between Court and Smith streets. The property on Atlantic (pictured above) is a four-story, 5,000-square-foot building with a duplex apartment, additional full-floor apartment and ground floor retail. It sold for $2,000,000, and was the first sale of the building in almost 40 years. Finally, the four-story, eight-unit property on Garnet Street closed for $1,200,000.
According to Gowanus Your Face Off, Verizon cleared its trucks out of the large lot it previously occupied in Gowanus, an entire block bordered by Nevins, Carroll, Union Streets and the Gowanus Canal. Verizon has used the space as a hub for field technicians since 1977 and is relocating to a facility on 3rd Avenue and 3rd Street. The 100,000-square-foot lot sold to a housing developer for $14 million last December. For now, the developer plans to just lease out the space. But it’s right across the canal from Lightstone’s massive 700-unit rental project, so there’s likely to be more waterfront development here in the neighborhood’s future… Verizon Vacates Gowanus Lot It Has Occupied Since 1977 [GYFO] Photo via GYFO
On Untapped Cities, Julia Vitullo-Martin has posted some remarkable interior photos of the Domino Sugar refinery. And she talked with Two Trees developer Jed Walentas about some of the challenges he’ll face transforming the empty industrial site into his vision for a residential and office complex. One of the real challenges will be converting the main brick building. She writes: “For one thing, it has no real floors and no real internal structure, but is instead ‘just a weird labyrinthine of equipment, much of which is completely integrated with the structure of the building,’ says Walentas. Massively big equipment will have to be removed and new space constructed within the empty shell of the building.” See a picture of some of that equipment after the jump and lots more on the Untapped Cities site.
Buyers at 659 Bergen Street (or at least the people that have signed contracts and hope to be buyers) continue to be stalled in their efforts to close on their apartments and finally occupy their homes. Many of these deals were signed in 2011 and buyers have been waiting over a year to get in. A tipster tells us that the developer of the Prospect Heights project, Boaz Gilad, has been saying that they will get the Certificate of Occupancy soon for well over a year now but it has yet to happen. On January 11, the realtor marketing the units, Aguayo Huebener, sent signers an email indicating that the building had passed all inspections and that they should start scheduling their own inspections and prepare for closing. Unfortunately, it turns out, the building had one more inspection to go. A few weeks later the building failed its gas system inspection on nine separate points. The realtor then forwarded questions from the signers to Gilad and emailed them his responses (which the tipster provided to us). He complained that the inspector with the buildings department (which he calls the plumbing department) “decided he wants to check all the plumbing again, and ALTHOUGH it was approved, he didn’t like the hot water system. We have no power to stop him from failing us…” The building failed the inspection primarily due to the venting of hot water heaters.
Several frustrated buyers have reported to DOB that somebody (the tipster says Gilad himself) has actually moved into the building despite the lack of a C of O. Several complaints (here, here and here) have been filed with the DOB on this point and though inspectors have visited the building they have been unable to gain access and therefore no action has been taken. The gas inspector also noted in his report that he was unable to access the fifth floor, the unit that is allegedly being occupied. In addition to all of this, our tipster says a few signers have been allowed to backed out of their contracts–but not to flip them for current market values. Instead, the units have been getting relisted for quite a bit more than the original asking price and our tipster says some have gone back into contract. For example, our tipster tells us, and Street Easy appears to confirm, that Unit 2D went into contract when the asking price was $369,000 in 2011 and was in contract again in December when the asking price was $449,000. Our tipster says it went into contract for $460,000.
Gilad is out of town and could not be reached for comment, however a representative from the marketer’s firm did say that the developer very much wants to obtain the C of O and close on the sales, that he is trying hard to make that happen and that there is no advantage to not closing on the properties. See a picture of the top unit with the lights on after the jump. Buyers in Limbo at Prospect Heights Building [Brownstoner] (more…)
Two Trees Management has a new vision for the former Domino Sugar Plant. While all of the previous plans have been purely residential, as has nearly all of the development in Williamsburg over the last decade, Two Trees now wants to include a significant office space component. The company is proposing space for up to 4,000 workers according to the The Wall Street Journal. This comes at a time when small businesses have been complaining about the lack of office space in the neighborhood. Jed Walentas, founder of Two Trees, is critical of the purely residential development that has dominated in Williamsburg and Long Island City. He told the Journal, “they don’t make great urban places, they don’t integrate into the neighborhoods. What we’re trying really, really hard to do here is to mix in enough commercial office space to give this neighborhood and this community a sense of that feeling of vitality.” Any change to the existing residential plan would require approval from City Council and city agencies. Councilman Stephen Levin is supportive of the idea.
The warehouse at 246 Ashland Place is finito, after the DOB approved demolition permits in November. Now that it’s gone, there’s space for two coming developments. A small part of the parcel will be dedicated to the visual arts plaza outside of the Theater for a New Audience, now under construction. But a majority of the site (now a parking lot) is for the North Tower I. This site will be developed by the Gotham Organization and DT Salazar Inc., who plan for 600 new residences, half of which will be affordable. This development will also include 20,000 square feet of cultural and related office space and 20,000 square feet of retail space. The city recently released an RFP for North Tower II, which will bound the southern end of the arts plaza. And then of course there’s the BAM South Site, across from Lafayette Avenue, where the Two Trees developers recently started up the land use review process. Click through to the jump for a very helpful map outlining how the city-owned property will be divvied up. One other note: Yesterday the Brooklyn Paper reported the city has yet to rule on Two Trees’ request for a zoning change to allow more housing at the site, which we covered in December.
At least seven of the construction companies that worked on Atlantic Yards are on New York City’s caution list, DNAinfo found in an analysis of public records. Two are banned from contracting with the City’s School Construction Authority. Private developers are not required to check the list before hiring. None of the firms landed on the list for work performed on Atlantic Yards. But four were already on the list while working there, the story said. Above, Barclays Center under construction in August. Shady Firms Flagged by City Helped Build Barclays [DNAinfo]
Turns out that George Chappell flip at 271 Jefferson Avenue we wrote about Friday wasn’t an anomaly. This area of Bed Stuy is, architecturally speaking, one of the finest in the borough, with buildings by noted architects Montrose Morris, Amzi Hill, Chappell and others. Developers are snapping up elaborate (or formerly so) houses in the proposed Bedford Historic District for middling prices and turning them around for more than a million dollars, doubling their money — sometimes in only a month, leading us to wonder if they did any work. Take 221 Jefferson Avenue, for example (pictured above). We passed up covering this house earlier because the listing has no interior photos. But then we saw a post about it over at BK to the Fullest. Turns out a rehab company bought it last month for $500,000 and now it’s back on the market for $1.2 million. Don’t be so sure they won’t get their price. Brownstoner HOTD 106 Hancock Street was also flipped and is already in contract after only a month, as BK to the Fullest pointed out. (It was asking $1.1 million.) All this leaves us with several questions: Did these houses not qualify for mortgages, thus keeping the (all-cash) price low? Or do sellers not know what their houses are worth, perhaps because the market is moving so quickly? If so, how long can this go on before sellers raise prices and cut out the flippers? Does anyone have any insight? Bed-Stuy Flip (Again): 221 Jefferson Avenue [BK to the Fullest] George Chappell House Survives Flip, Sells for $1.2M [Brownstoner] House of the Day: 106 Hancock Street [Brownstoner] Photo by Christopher Bride, PropertyShark
Architect-turned-developer Alex Barrett is not your everyday developer: His firm buys historic buildings and renovates them to a high design aesthetic that appeals to buyers in neighborhoods such as Carroll Gardens. He grew up in Park Slope and moved to Carroll Gardens in 2004. “As a designer walking the neighborhood and seeing some of the small-scale development being done, I was thinking it could be done a little better,” he said at the Brooklyn Historical Society’s Real Estate Roundtable Tuesday. (Click through for details on how he does it and more photos.) (more…)