13.3.12
Sweet News On the Waterfront
Big news from Brooklyn... maybe. The Community Preservation Corporation and it's partner, the Katan Group, may or may not be looking to sell the Domino Sugar Factory.
Per the Full Story below, all or part of it is being shopped around.
How much of it? For how much? To Whom?
Originally purchased in 2004 for just under $56M, CPC and Katan spent several years and an unknown sum of money pushing the M3-1 zoned lots of 774600SF through a variety of levels of city and state government. As of May last year, they succeeded in having the entire parcel rezoned as R8 with a small lot on the east side of Kent Avenue made into an R6. The total buildable SF now stands at over 4.6M.
To put those numbers in
some kind of context, the ground area is equal to 3 full size midtown
blocks and the buildable SF is enough for 1.75 Empire State Buildings.
The CPC Katan partnership planned to fill this volume with 2200 housing
units and several hundred thousand SF of commercial and community
facility space.
So
what is it worth? How much can it make? At Cubed Advisory, we help
many clients figure out exactly that. In this case though, the analysis
goes much deeper than blog post math. One needs to balance the
potential earnings of the site against the cost of construction, which
in this case includes significant infrastructure and an enormous amount of demolition. Hazardous material
remediation is a factor as the existing structures are full of
asbestos. Lower returns from 220 low income housing units cemented into the rezoning deal can be balanced by possible tax incentives.
Possible city partnerships for waterfront development? Correct balance
of rental/condo mix? The number of variables grows very quickly.
As
potentially the first significant Brooklyn development after the condo
crash and coming in on the run up of a hot rental market- expect this
project to dictate the pace and price point of development in Brooklyn.
Provided of course that deep enough pockets can be matched to the
ambitious amount of SF to build. Labels: Community Preservation Corp, CPC, development, Domino Sugar, Katan, Williamsburg
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