The Real Deal New York

Westbrook, Invesco eye position in huge Brooklyn property

Deal could value 47 Hall Street at north of $300M

September 21, 2015 01:35PM
By Rich Bockmann and Hiten Samtani

Ruby Schron and Bruce Federman with 47 Hall Street

Ruby Schron, Bruce Federman and 47 Hall Street in Clinton Hill

Westbrook Partners and Invesco Real Estate are among the investors bidding on a massive industrial building near the Brooklyn Navy Yard in a deal that could value the property north of $300 million.

The institutional investors are vying for what is most likely a minority stake in 47 Hall Street, a 550,000-square-foot warehouse in Clinton Hill owned by partners Bruce Federman, Rubin Schron’s Cammeby’s International and Eli Fruchthandler , sources told The Real Deal.

The deal would most likely be similar to the partners’ more high-profile Brooklyn property, Industry City, where they brought on investors Belvedere Capital, Jamestown and Angelo, Gordon & Co. to infuse cash into a redevelopment of the industrial campus.

A 49-percent stake in 47 Hall could be worth up to $165 million, one source with knowledge of the property said. Much like Industry City a few years ago, the building is mostly occupied by small commercial tenants paying rents of between $6 and $8 per square foot.

The ownership has stopped renewing leases in anticipation of a future overhaul, the source said.

Federman could not be immediately reached for comment. Jamestown’s Andrew Kimball is overseeing the transformation of Industry City after the partners committed $100 million to the first phase of the renovation project.

Westbrook and Invesco have made other large industrial redevelopment plays.  Last month, Westbrook paid $200 million to take a majority position in the 1.1-million-square-foot St. John’s Terminal in Hudson Square. And Invesco is a large investor in Dumbo Heights, a 1.2 million-square-foot Brooklyn complex being developed by Kushner Companies, RFR Realty and Asher Abehsera’s LIVWRK.