Domino Suit Thrown Out, Paving The Way For Factory’s $180 Million Sale
Daniel Geiger Oct. 9, 2012, 7:09 p.m.
The State Appellate Court has thrown out a lawsuit seeking to block the sale of the Domino Sugar factory, paving the way for the real estate firm Two Trees to close on a $180 million acquisition of the property later this month.
The Katan Group, which owns the site in a joint venture with the Community Preservation Corporation Resources, launched the suit during the summer, alleging CPCR had ignored higher bids for the 11-acre parcel and therefore had not acted in the best interest of the partnership to try to maximize profits in a sale.
CPCR reached a deal in June to sell the sugar factory, long a landmark of Williamsburg’s waterfront, initially for $160 million. Two Trees raised its bid to $180 million after the Katan Group balked at the price, claiming it had better offers from a host of other prospective buyers, including Joe Chetrit, lawyers for the Katan Group told The Commercial Observer.
The Katan Group’s suit, which began in August, was struck down in September, but on September 28, the appeals court granted a temporary injunction in order to review the case, giving the plaintiff temporary hope that it might be able to break up the sale or force Two Trees to again up its bid.
With the Appellate Court’s decision today however, the sale can now close. Two Trees is scheduled to complete its acquisition of the Domino site on October 15. CPCR had imagined building up to $2 billion of market rate and affordable housing on the site, which has sweeping views of Manhattan, while preserving the old refinery building that has become an icon of Williamsburg’s industrial past. Two Trees has not yet revealed whether its plans for the site will follow CPCR’s vision.