Borough Developers Closes on $84M Sale of Downtown Brooklyn Development Site

Brooklyn-based Borough Developers has acquired a major mixed-use development site in Downtown Brooklyn, right across from the new retail project at a former Macy’s, Commercial Observer has learned.

The firm acquired 485 Fulton Street and 147 Lawrence Street — a 33,153-square-foot site known as the Bridge & Fulton Development Site — from ICER Real Estate for $83.5 million, according to JLL, which brokered the deal for both sides.

Borough Developers secured an $85 million acquisition and pre-development loan from BridgeCity Capital for the deal.

“The transaction closed in just 16 days, underscoring our ability to move quickly and execute under tight deadlines,” EJ Ehrlich, director of originations at BridgeCity, said in a statement to CO. “This transaction reflects our continued ability to structure and execute complex financing solutions for high-quality development sites across New York City.”

Last month, Shimon Kleinman, co-founder of Borough Developers, filed plans with the New York City Department of Buildings to build a trio of 99-unit residential buildings on the site, meaning the developer is likely trying to utilize the state’s 485-x tax abatement program. That program comes with steeper construction wage requirements for projects of 100 units or more.

Kleinman’s initial filing would see a total of 297 housing units built on the site, but BridgeCity said the building is set to comprise a total of 468 residential units, commercial space and amenities. JLL, which said the planned number of units is subject to change, said the project will include four buildings comprising retail on the ground floor and residential units above.

The development site has 350,000 buildable square feet. The existing 139,438-square-foot building on the property — currently home to a barber shop — will be demolished to make way for the new housing, according to JLL.

JLL’s Ethan Stanton, Michael Mazzara and Brendan Maddigan represented the seller and the buyer.

“This sale speaks to the continued strength of investor conviction in Downtown Brooklyn and, more broadly, the value developers are placing on well-located sites where they can build housing at meaningful scale,” Mazzara said in a statement. “There are very few opportunities of this size in a neighborhood with this level of transit access, residential demand and established retail. The combination of scale, location and development flexibility made 485 Fulton particularly compelling.”

Kao Hwa Lee Architects is the registered architect on Kleinman’s filed plans for the project. A spokesperson for the architecture firm did not immediately respond to a request for comment, while Borough Developers could not be reached for comment.

The planned mixed-use development is directly across the street from the former Macy’s department store at 422 Fulton Street, which is being renovated into a five-floor retail and entertainment spot called BKX.

Isabelle Durso can be reached at idurso@commercialobserver.com.