The Real Deal New York

Meral Property and Joyland pay $35M for 5-acre Gowanus site

Former home of Pathmark grocery includes 120K sf building and parking lot

October 14, 2016 03:59PM

1-37 12 Street (credit: Joyland Group)

1-37 12 Street

A joint venture between Meral Property Group and Joyland Group closed on the site of a former Pathmark supermarket in Gowanus for $35 million last week.

The nearly five-acre site, located at 1-37 12th Street, has a parking lot and a 125,000-square-foot building that was once home to the grocery store and several smaller retail tenants, Crain’s reported.

Meral Property and Joel Wertzberger’s Joyland bought Pathmark’s lease at the site for $6.3 million at a bankruptcy auction last year. Pathmark’s parent company, The Great Atlantic & Pacific Tea Company, went belly up last year.

It is not immediately clear what the partners will do with the Gowanus site, which is next to a Lowe’s Home Improvement and the Gowanus Canal. According to Crain’s, it’s likely they’ll keep the existing 50,000-square-foot structure that housed Pathmark, since New York City law wouldn’t permit a new retail building with a single tenant being more than 10,000 square feet.

Mayor Bill de Blasio’s administration is looking at rezoning Gowanus to make way for additional residential development, including affordable housing.

Meral Property and Joyland, both based in Brooklyn, are jointly developing a six-story, 60,000-square-foot mixed-use building in Flatbush.  [Crain’s]Miriam Hall