But Rockrose Development’s purchase of a city block in Brooklyn, which closed Friday, for $100 million shows that’s not entirely true; it just might not be easy.
The sale comes after Rockrose dropped $65 million on an adjacent parcel in Cobble Hill, which had many plans and zero apartments. Both locations were once home to Long Island College Hospital, which Rockrose has now reassembled.
An entity affiliated with LICH and SUNY Downstate Health Sciences University sold Rockrose the most recent site, which includes 363 Hicks Street, 365 Hicks Street, 97 Amity Street and 340 Henry Street. Dan O’Brien and Jimmy Kuhn of Newmark brokered the sale.
Madison Realty Capital owned the other location at 91-95 Pacific Street. The lender had bought it from Fortis Property Group after the developer’s plans for the plots did not materialize and its $48 million loan was foreclosed.
Fortis seemed to have bought first and planned a second.
The initial rezoning vision was shot down by then-City Councilman Brad Lander, who was looking for more affordable housing and community amenities than Fortis seemed to be able to provide. Meanwhile, the developer became embroiled in a lawsuit with SUNY over what the university said was Fortis’ inability to complete a second part of the deal that would have served as a medical campus for New York University.
On the other end of the spectrum, Rockrose may not need to rezone and has now put together a prime piece of real estate for a multi-family development. It also successfully navigated the New York State Attorney General’s office, which had to approve the purchase given the nonprofit involved in the sale.
While the deals don’t quite amount to adaptive reuse, they show that there is still plenty of prime real estate for developers who know what to do with it.
If only there was a new plan for that leaning tower in FiDi…
What we think about: Home sales in January were disappointing and one economist blamed the weather. New York has been a tundra lately, but if someone is going to buy a house, will an extra layer really hold them back? Please let me know if I’m wrong by emailing jacob.indursky@therealdeal.com.
Something we learned: In the mood for love? Head to the most loveless place on earth, Times Square, where you can watch two engagements and two real wedding ceremonies Valentine’s Day. Nothing says romance like a life-size Elmo pointing at his watch because a new couple is getting married.
Elsewhere…
— The online prediction market Polymarket launched its free supermarket Curbed on Thursday reported. Open only through Sunday, the store is stocked with Kirkland brand olive oil and milk, which appear to have been purchased by a nearby Aldi. One customer told the outlet they waited in line for 11 hours for $120 worth of free groceries.
– A Long Island city issued a three-month ban on new pickleball courts, Newsday reported. The Glen Cove City Council voted unanimously to prevent residents from placing new courts on their property, mainly to quell noise complaints. But the courts are not gone forever. The local law was put in place so that the city can conduct a “thorough investigation into the impacts that playing pickleball may have on city residents.”
Closing time
Residential: The highest residential deal recorded on Friday was $57 million for Vestrystraat 70, PHS. The Tribeca apartment unit is 7,800 square feet. From the Modlin group Adam Modlin has the entry.
Commercial: The best recorded commercial deal was $15.3 million for 158 Lafayette Street. The seven-unit mixed-use building in Soho spans 19,500 square feet.
New on the market: The highest price for a home to hit the market was $28.9 million for 217 West 57th Street, Unit 86E. The Midtown Central condo unit is new construction and 4,300 square feet. The Corcoran Group Kane Manera and Janet Wang are credited.
Groundbreaking: The largest new building permit submitted was for a proposed three-story, 40,239-square-foot, 59-unit building at 480 Rosedale Avenue in Soundview Park. Lawrence Pinner of Pinner Architect is the registered applicant.– Joseph Jungerman
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