Development Group Signs Triple Net Lease for Gowanus Property
A development group led by Sam Boymelgreen has signed a 49-year triple net lease for a 90,000-square-foot loft at 255 Butler Street in Gowanus.
“With developers moving forward with several residential projects along the Gowanus Canal, this was a prime opportunity to maximize the value of the asset for the owners,” said Bob Klein of Kalmon Dolgin Affiliates, who arranged the lease alongside James Dario, in a prepared statement.
Located between Nevins and Bond Streets, the property is nearby Lightstone Group’s planned development of a 700-unit rental apartment building and Whole Foods’ planned 50,000-square-foot location, which is expected to open later this year.
Acquired by Nathan and Solmi Accad in 2003, in a deal also brokered by Mr. Klein, the Gowanus property is now set for a multi-million dollar redevelopment led by Mr. Boymelgreen. Details of the redevelopment were not disclosed, but plans should be forthcoming within the next two months, according to Mr. Klein.
“Everybody wanted to buy [the property,]” Mr. Klein told The Commercial Observer. “[The owners] just felt that they wanted to keep it in the family long-term, they were motivated with the long-term rental.”
A lease deal recorded last month between 255 Butler LLC, the owner, and 255 Butler Associates LLC, the lessee, has an option to extend the term for a period of 10 years, according to the agreement.