The Real Deal New York

Slate, Meadow buy DoBro building next to One Flatbush site

Office property with 72K sf could be reborn as condos

September 22, 2015 08:00AM
By Mark Maurer Twitter_logo_blue copy

570 Fulton

From left: 560-570 Fulton Street and rendering of One Flatbush in Downtown Brooklyn (credit: Goldstein, Hill & West) (inset: David Schwartz and Ofer Cohen)

Slate Property Group, Meadow Partners and an unidentified developer just closed on a Downtown Brooklyn property adjacent to the site of their One Flatbush project, The Real Deal has learned. The partners paid $23 million, and are likely to build condominiums on the site.

Foster-care nonprofit SCO Family of Services have owned the three-story, 26,400-square-foot office property at 560-570 Fulton Street, near Rockwell Place, for 30 years, records show. SCO, which paid $500,000 back in 1985, put it on the market last year and entered contract to sell it in February.

Sources familiar with the deal said the buyers are considering building condos on the site. The partnership paid about $318 per square foot for the site, which offers nearly 72,000 buildable square feet, but could build up to 86,000 square feet if they choose to avail of an inclusionary housing bonus.

TerraCRG’s Ofer Cohen, who brokered the deal with colleagues Melissa Warren and Dan Marks, said it was unlikely the partners would combine the two adjacent projects.

“From a zoning-lot perspective, there’s a lot you can do,” he said, “but in terms of massing, this is not the most efficient site. There are inherent challenges.”

SCO already moved its facility to a nearby space above a TD Bank branch on Fulton Street, and the other office and retail tenants are set to soon vacate the property, Cohen added.

In April, Slate and Meadow, both Midtown East-based investment firms, paid a record $500 per square foot, or $59 million, for 546-556 and 558 Fulton Street. One Flatbush, a 16-story, 120,000-square-foot rental building which will rise on that site, is slated to be finished by 2017.

Just northwest of the sites, RedSky is close to amassing a 500,000-square-foot assemblage at the intersections of Fulton Street, DeKalb Avenue and Flatbush Avenue.