Brooklyn is seeing a residential construction boom — stalled projects are coming back to life and lenders are opening up to financing outer-borough projects. Now, Midwood Investment & Development is building two more rental properties, one in Park Slope and another in Williamsburg, that will be marketed by the Marketing Directors, The Real Deal has learned. The same firm will also handle leasing at LCOR’s latest project in Williamsburg.
Midwood, in partnership with the Meltzer Organization, is constructing a six-story, 28-unit rental property at 800 Union Street in Park Slope. Midwood is also developing a 13-story, 82-unit property at 282 South 5th Street in Williamsburg. And after securing a $50 million construction loan last year, the investment and development company LCOR is erecting a 232-unit rental building at 250 North 10th Street, as The Real Deal previously reported.
282 South 5th Street will have 24 studios, 40 one-bedrooms and 18 two-bedroom units. 250 North 10th Street will have 95 studios, 105 one-bedrooms and 34 two-bedroom units. And 800 Union Street will have eight one-bedrooms, 16 two-bedrooms and four three-bedroom apartment units.
“In the past few years, certain Brooklyn neighborhoods have blossomed into very desirable residential enclaves,” Jacqueline Urgo, president of the Marketing Directors, told The Real Deal. “Savvy developers are making the most of pent-up demand by creating thoughtful marketing programs that will enable them to achieve the greatest immediate and long-term value for their assets.”
Urgo pointed to the success of Arias Park Slope, a 95-unit residential tower which commanded rents of between $46 to $50 per square foot when units went on the market in April 2011. The property, built by the Iconic Group, was acquired by institutional investor Invesco for roughly $57.5 million a few months after the launch, and leasing is currently handled by aptsandlofts.com.
Apartments at 250 North 10th Street will hit the market in early 2014. Construction has not started yet at 800 Union Street and 282 South 5th Street, Urgo said, but units will be available for rent in the spring and fall of 2014, respectively.
LCOR is also behind the $1.4 billion redevelopment of Terminal 4 at the John F. Kennedy International Airport. In May of last year, the California State Teachers’ Retirement System paid roughly $820 million for a majority stake in the developer, which was previously owned by Lehman Brothers.
Midwood was founded in 1925 and continues to hold numerous buildings in the five boroughs, including 285 Broadway in Williamsburg and 430 Park Avenue in Midtown, which boasts a Frank Lloyd Wright-designed retail space previously occupied by a Mercedes Benz showroom.
Representatives from LCOR and Midwood could not immediately be reached for comment.