Jed Walentas

Even as construction sites around New York City slowed to a halt during the coronavirus pandemic, Two Trees was allowed to continue demolition on the landmarked Domino Sugar Refinery, which will be the centerpiece of its megaproject on the Williamsburg waterfront.

The refinery will hold 425,000 square feet of office and retail space when it’s complete. It was joined last year by 1 South First, a 45-story rental tower with 330 units, 66 of which are affordable. Attached to 1 South First is Ten Grand, a 24-story, 150,000-square-foot boutique office property. Two Trees, led by CEO Jed Walentas, is wrapping up work on the building, which has attracted just one tenant so far, shampoo maker Prose. Asking rents in the building are in the $70s per square foot.

Despite the lethargic leasing activity at Ten Grand, Two Trees Managing Director David Lombino said he was “optimistic that the location—closer to residential neighborhoods—and the relatively small floor plates will be attractive to folks that are retreating from central business districts.”

The Domino Sugar complex’s first residential tower, the 16-story, donut-shaped 325 Kent, opened in 2017 with 522 rentals.

Nearby, Two Trees is preparing to undertake a controversial rezoning for a 1.3 million-square-foot, Bjarke Ingels-designed residential project called River Street. The 1,000-unit, partially affordable development is supposed to enter the city land-use process sometime in 2021.

The company has also been negotiating abatements and payment plans with the more than 500 office tenants in its Dumbo office properties, most of which are smaller businesses.

Lombino said the firm was worried about the city’s future in the wake of the coronavirus crisis.

“Our outlook on the city is not bullish,” he said. “There are massive fiscal crises on the city and state level that we’re only beginning to understand. I think we’ll start to see more when property tax collections become clearer toward the end of the year.”— R.B.R.