The Real Deal New York

Forest City Ratner aims to sell Brooklyn site for $185M — or find partner

Developer purchased lot at 625 Fulton Street in 1989

October 13, 2014 03:35PM

From left: The former structure at 625 Fulton Street (via PropertyShark) and MaryAnne Gilmartin of Forest City Ratner

From left: The former structure at 625 Fulton Street (via PropertyShark) and MaryAnne Gilmartin of Forest City Ratner

Forest City Ratner is at a fork in the road with respect to its development site at 625 Fulton Street. Either the firm will sell the plot, which is asking $185 million, or it will find a development partner to construct a residential tower.

CBRE Group is marketing the site located between Hudson Avenue and Rockwell Place. It can accommodate over 600,000 squaree feet of residential development, Crain’s reported.

The asking price boils down to $300 per foot. Crain’s sources indicated the average Downtown Brooklyn asking price is $50 higher, however. That means the plot could sell for much more than its ask.

Forest City Ratner picked up the lot in 1989. The developer later converted a candy factory on the site into an office property, which had a collection of government tenants. — Zachary Kussin

  • Michael M.

    The great job builder Forest City is at it again. Destroying a perfectly good 359 Thousand-square-foot office building holding hundreds of jobs, only to make room for another sterile non-productive luxury residential tower that will hold 2 jobs. Doorman and Maintenance. Fine use of real estate in the middle of a downtown. They could have just sold the building to the many tech, start ups, and other companies desperately looking for office space but they didn’t. Why? Simple Greed.
    Downtown needs more commercial and hotel space not any more luxury residential towers.

    • Crian Bashman

      The demand for housing is greater than office space in this area. You may not like it, but that is the reality in this market. There is a lot of new office space coming on line with the Watchtower conversion project. I think Hudson, Rockwell and Fulton will benefit from the redevelopment of this site to residential with good ground floor uses. The block can be a bit of a deadzone.

      • what!

        The amount of office space coming to the city is still on a decline from past years.

      • Michael M.

        There is great demand for Hotel space B, C and tech type office space
        in DT Brooklyn. However as has been reported before these are usually
        outbid by the demand comes from real estate developers looking to make a
        fast buck on the back of the city with luxury residential buildings and
        condos. Jehovas Witness space will be commercial only because Kushner.
        Any other developer would have turned them into condos.

        Sure,
        there is money to be made by the developers taking advantage of rezoning
        meant for commercial development downtown. My question is, is this
        right for the city?

        My opinion is this is very wrong and on many fronts.
        The
        city and its citizens loose out because downtown real estate is a non
        renewable resource optimized for commerce, jobs and retail. In many ways downtown’s are
        the hearts of cities.
        Companies have less space on witch to locate, less jobs, less tax revenue for the city.

        Citizens have to foot the bill for tax subsides on luxury residential
        towers. Whatever affordable units are in these new buildings are also
        subsidized by the city and citizens. These “affordable units don’t make a dent in the overall shortage of affordable
        apartments and because other citizens are footing the bill are not really affordable.
        Contrary to popular belief these apartment towers
        dont bring great activity or extra life to an area as one can witness
        walking along flat bush avenue extension where the Toren cluster is. Its
        a very stale and desolate place with a strong smell of dog urine in the
        streets.

        My conclusion is that these residential buildings built
        on downtown real estate and replacing commercial space don’t solve the
        housing shortage problem and impede commerce on a district meant for it.
        These lots only become money trees for a few developers to the great
        loss of most New Yorkers.

        These buildings should be built in the
        peripheries of Downtown. Places all along 4th avenue, Flatbush, Atlantic
        and 3rd avenue shoud be greatly upzoned where they would be
        complimentary to Downtown.
        I dont blame developers. Its oudated city
        zoning in most of the city and a misguided incentive structure that has
        underpinned this great artificial residential demand in Downtown Brooklyn. This great displacement causing its decline as NYC 3rd business district and transforming it into a stale vertical suburb.
        —Just my opinion.

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