The Real Deal New York

Rabsky in talks to sign trampoline park at W’burg complex

Developer planning a second building on 3-acre site for creative office space

July 27, 2016 03:25PM
By Mark Maurer Twitter_logo_blue copy

101 Varick Avenue

Sky Zone trampoline park (credit: Sky Zone) and aerial view of 101 Varick Avenue in East Williamsburg

Sky Zone, a national chain of indoor trampoline parks, is negotiating to bounce into a new space at an East Williamsburg warehouse now owned by Rabsky Group, sources told The Real Deal.

Rabsky, one of Brooklyn’s most active developers, closed on the purchase of the 3.4-acre site at 101 Varick Avenue for $45 million last week. Display case manufacturer M. Fried recently vacated the site’s one-story, 92,000-square-foot building, which it had owned and occupied for 25 years.

A term sheet for 50,000 square feet is out with Sky Zone at the property, said sources familiar with negotiations.

Rabsky’s TRData LogoTINY plans call for a new, five- or six-story building that would house creative office space, in addition to the existing structure that will target sports-related tenants, sources said. In total, the office-and-retail property will span 285,000 square feet.

Sky Zone has been rapidly expanding its footprint, with nearly 170 U.S. locations expected by the end of the year. The company also has locations in Mexico, Canada and Australia.

David Junik

Pinnacle Realty’s David Junik

Pinnacle Realty’s David Junik and Abraham Lowy brokered the sale of the building and are handling leasing at the property.

“A large, one-story building with a lot of extra land in this area is rare,” Junik said. “At a time when so much of the office inventory is in existing or converted warehouses, there is an opportunity to create a certain vibe in the creative office scene with a brand-new structure.”

Asking rents in the area average $40 to $50 per square foot for office and $30 to $35 per square foot for retail.

Over on the East Williamsburg-Bushwick border, a new office submarket is emerging. Developments include the Normandy Real Estate Partners-led office-and-retail project at 333 Johnson Avenue and Lincoln Property Company’s office-and-retail project at 455 Jefferson Street.

Representatives for Sky Zone and Rabsky could not be reached for comment.

The deal was under contract for more than a year, allowing M. Fried time to secure a new location in Red Hook.

Last week, Rabsky, a Williamsburg-based residential-centric development firm led by Simon Dushinsky and Isaac Rabinowitz, sold its sole Manhattan asset. The company is developing a 500-unit rental on part of the Rheingold Brewery site in Bushwick and a 195-unit rental at 42-20 27th Street in Long Island City.

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