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The Journal has an article today about how these are tough times indeed for a developer’s grand vision to transform Sunset Park’s Industry City into a mecca for artists. To wit: “Beginning in 2007, [developer Rubin] Schron took out loans that ultimately totaled about $300 million which were converted into commercial mortgage backed securities, according to Realpoint. Soon after that the recession hit the outlook for his property, named Industry City, worsened. So far only about 600,000 square feet of its 6 million square feet of space has been converted and only about 400,000 square feet of that is occupied. The property’s occupancy has also dropped to the 60% range from 87.2% in 2007, according to Realpoint and a copy of the loan’s prospectus. The Schron group is hopeful it will be able to restructure the debt and hold onto the property, according to people familiar with the property.” While this is basically just another old-hat story about overleveraged investors, it tugs at the heart strings: The potential for revitalization in this area, with its amazing stock of warehouses and brilliant waterfront views, seems like a no-brainer.
Setback for Historic Warehouse [WSJ]
Industry City, a Photo Tour [Brownstoner] GMAP


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  1. Following up on bkn4life, this building (and Sunset Park in general) suffers from some other access issues that can be overcome:
    -subway: 36th st D/N/R stop is not central to the neighborhood
    -walking: east to west there is the gowanus expressway. north to south, there are the exit ramps at 39th st. and the only walkable street is 5th ave with its greenwood cemetery bookends of the bus depot at 36th and con ed site at 24th
    -bike: there are no real bike lanes in the area
    -car: can’t get on gowanus expressway at 39th st.

    The Sunset Park Vision Plan and other efforts have pointed these things out, but until there is action it is hard to see Industrial City’s urban context improving.

  2. ‘manufacturing’ is nearly dead in BK, craft (small manufacturers) is alive no tenants needed to be run out, space for both also, buildings like these serve as distribution points for goods, very little large manufacturers left space in jersey is $4-6 a foot

  3. I can’t comment on the macro level concerning debt, but i do know what is happening there having been working on it for over 3 years. Landlord renovated five floors in two buildings for artists and other tenants, and has leased all of them as of this writing. Most tenants are artists, but many craft (small industrial), office, creative and other tenants have taken the spaces. A huge window replacement project has started, beginning at the 36th Street property.
    iccws.com for more info

    multistory industrial getting hurt by the economy these days, tough times

    long run, this is the place Loft Law took 40 to 60 buildings out of commercial service in northern bklyn, dumbo has only a few craft tenants left, next condo boom will kill hundreds of commercial spaces in northern brooklyn

    sunset waterfront will be only place for these tenants

  4. I know an artist in this building. Rents don’t seem to be excessive. Problem is it is a great location for people coming from far away. as in the brnx and manhattan due to its 36th street stop on the N/D. Locally not centrally located.

  5. I’m sure if they halved their rents, they’d fill the place up. The problem is not that they have “trouble luring tenants”, but rather that they find it impossible to keep servicing their bubblicious debt-load at current market conditions.