ICSC 2015

New Renderings, Details Revealed for Dekalb Market Hall

3 Photos

Signage for DeKalb Market Hall.

“I’m just trying to create a really great gathering place for people to hang out,” Anna Castellani, the president of Local Culture Management and a partner in DeKalb Market Hall, told Commercial Observer. Ms. Castellani is partnering with Acadia Realty Trust and Washington Square Partners, co-developers of Downtown Brooklyn’s City Point, home to the 27,000-square-foot concourse-level DeKalb Market Hall. Opening early in the mornings, the market is “going to be open late-night as well.”

Ms. Castellani said the food hall, for which she has a 20-year lease, is about 50 percent spoken for and by the time it’s done there should be 40 vendors. Slated to open in spring 2016, tenants include Arepa Lady, Eight Turn Crepe, No. 6 Coffee, Forcella Pizza, Pierogi Bar, Fletcher’s Brooklyn Barbecue, Pain d’Avignon, Steve’s Ice Cream and Cuzin’s Duzin and likely Katz’s Delicatessen as an anchor. Read More

Sales Beat

Gary Barnett Pays $115.5M to Build Resi Tower at City Point

City Point

Extell Development has paid $115.5 million for the rights to build a mixed-use tower at City Point in Downtown Brooklyn, marking the first venture for the company in the fledgling borough.

Gary Barnett, the president and founder of Extell, plans to start construction on the 665,000-square-foot tower in 2017 and hopes to finish by 2020, according to City Point developers Acadia Realty Trust and Washington Square Partners, which sold the rights to the developer. Read More

Mortgage Observer

Helaba Finances 1035 Third Avenue Condo Buy

1035 Third Avenue.

The German bank Helaba provided a $42 million loan to Acadia Realty Trust for the purchase of retail, office and parking condominium space on Manhattan’s Upper East Side, Mortgage Observer has learned.

Acadia, based in White Plains, N.Y., acquired the mixed-use property at 1035 Third Avenue for $51 million through its Strategic Opportunity Fund IV platform, according to the REIT’s latest earnings report. The seller is listed as O’Connor Capital Partners led by the former Cushman & Wakefield CEO Glenn Rufrano. Read More

The Lobby

Reba Miller Officially Launches Commercial Arm, Closes Deal

27 East 61st Street.

Reba Miller has officially launched her new commercial division after getting it off the ground in March, the firm announced.

The firm tied the announcement of the new division to the recent closing of its first commercial real estate deal—the sale of a 10,000-square-foot, six-story mixed-use building at 27 East 61st Street to Acadia Realty Trust. Ms. Miller’s firm listed the property for $18.5 million. Ms. Miller declined to indicate the identity of the seller as well as the sale price. Read More

Sales Beat

Acadia Closes $50M Buy of Soho Retail Co-ops

131 Prince Street.

Acadia Realty Trust has paid $50 million for two retail co-op units totaling 3,000 square feet at the base of 131-135 Prince Street, Commercial Observer has learned. The deal, which amounts to $16,666 per square foot, closed earlier this afternoon after being signed in late June, sources close to the deal said.

The seller was a family trust affiliated with Louis Meisel, who owns and operates the Louis K. Meisel Gallery at 141 Prince StreetRead More

New Developments

Muss, AvalonBay Plan Sheepshead Bay Development

A joint venture between Muss Development and AvalonBay Communities is planning a residential development on a recently acquired site in Sheepshead Bay, Brooklyn, Commercial Observer has learned.

The partners are planning a split condominium and rental building on the vacant 83,000-square-foot site at 1501 Voorhies Avenue, Jason Muss of Muss Development confirmed. Read More

Sales Beat

Acadia Realty Trust Acquires Soho Retail Condo

152-154 Spring Street. (Acadia Realty Trust)

Acadia Realty Trust has acquired the retail condominium space at at 152-154 Spring Street in Soho. The real estate investment trust converted an existing $38 million first mortgage loan into an equity investment through the exercise of a purchase option, according to the company’s quarter operating results.

The acquisition consists of 2,900 square feet of retail space currently occupied by Kate Spade Saturday. Read More

Brooklyn Issue

City Point of No Return

CityPoint

Though controversy has surrounded the City Point development in Brooklyn since its inception, the development’s first residential tower is rising under the radar as the tussles subside, at least temporarily, and the commercial real estate industry readies for a major boost for the Downtown Brooklyn area. 

The residential portion of the project’s second phase has risen Read More

Sales Beat

Acadia Realty Trust Sells Bronx Mixed-Use Building for $133.9M

Fordham Place

Acadia Strategic Opportunity Fund II, a subsidiary of Acadia Realty Trust, has agreed to sell Fordham Place, a 262,000-square-foot mixed-use property in the Bronx, to Retail Properties of America for $133.9 million.

The transaction is the second between the two parties this month. Earlier, Retail Properties of America, a publicly traded real estate investment trust, acquired Pelham Manor Shopping Plaza from Acadia for $58.5 million.

Read More

Mortgage Observer

Development Projects Abound, But Boroughs Still Under-Retailed

Throggs Neck Shopping Center.

New York City is the number one retail location in the world. Retailers from around the world flock to open flagship stores throughout the Big Apple. Apple’s store on Fifth Avenue, with its familiar cube, has the highest revenue of all Apple stores. Then there are the flagships of Uniqlo, Zara, Tiffany & Co., Bergdorf Goodman and a cast of others. Nevertheless, when you ask prominent owners of commercial real estate as well as local and national retailers, the general consensus is that the outer boroughs of New York City are severely under-retailed.

Eastern Consolidated’s Barbara Byrne Denham reported in May 2012 that retail sales per capita ratios for the outer boroughs were far below the national average. Brooklyn was 39 percent below, Queens was 40 percent below and the Bronx came in a whopping 60 percent below. Read More

Controversies

Acadia Realty Trust Speaks Out After Verbal Assault of its City Point Development in Brooklyn

City Point Rendering

Developers of the City Point project in Brooklyn want to set the record straight following a unionized protest and a fiery letter from the president of the Building & Construction Trades Council of New York claiming that the project exploits the community and burns taxpayer dollars.

In addition, some industry experts agree that less union work is simply a wave of the future that began decades ago.

While a spokesperson for developer Acadia Realty Trust expressed reluctance to get into a full-on spat over the issue, he defended his firm’s stance on the project, countering critics who said the project abuses taxpayer dollars.  He claimed that the project benefits from a single government subsidy — and that it is essential for the affordable housing component.

“City Point will generate thousands of jobs and enhance Downtown Brooklyn’s quality of life,” said Tom Montvel-Cohen, with Acadia Realty Trust.  “We are committed to maximizing local and minority contracting and employment as we create a LEED-certified development with the affordable housing, retail and entertainment options that the neighborhood well deserves.” Read More

Controversies

Gary LaBarbara of Building Trades Thrashes City Point Developers as Community Groups Rally for Changes

A peak atop the Armani Exchange at City Point

Gary LaBarbara has an axe to grind with developers at City Point before they dig any deeper into Downtown Brooklyn.

In a move that could exacerbate friction that’s already occurring at the community level, the president of the Building & Construction Trades Council of New York thrashed the builders of the development project, claiming that they are “failing” to meet the needs of the community by instead catering to private interests.

“City Point is receiving vast amounts of public subsidies ranging from tax exempt bond financing to property tax abatements,” Mr. LaBarbera wrote in an op-ed that appeared in Real Estate Weekly yesterday.  “But on a score central to responsible economic development for everyday New Yorkers — creating good jobs that strengthen local communities — City Point is failing.” Read More