The Real Deal New York

Salmar Properties begins transformation of Sunset Park’s Federal Building #2

October 20, 2011 12:56PM

Mayor Michael Bloomberg this morning announced that renovations have
started at Federal Building #2 in Brooklyn’s Sunset Park, as part of a $35
million plan to transform the 1.1 million-square-foot vacant warehouse
into a state-of-the-art industrial center.

In May, the city had selected developer Salmar Properties, which
bought the property for $10 million, to oversee the project.

“Federal Building #2 is well suited for industrial and manufacturing
uses, with 23 elevators banks, multiple loading docks and parking that
will enable tenants to easily move raw materials and finished goods in
and out of the building,” said Marvin Schein, co-owner of Salmar
Properties in a statement. “Salmar looks forward to developing this
site into a Class A building that will help generate jobs and keep
industry in New York City.”

As part of the sale, Salmar Properties has agreed to a deed
restriction for 30 years limiting the majority of the building — at
least 85 percent — to light industrial uses, with the remaining 15
percent available for retail and other uses that will also create
jobs, according to a statement from the mayor. The developer must fulfill minimum build requirements — which include the repairs to the façade,
roof, and windows, as well as the elevator, plumbing and electrical
installation — within two years.

The project received assistance from the New York City Industrial
Development Agency, which approved approximately $37 million in sales
and real estate tax exemptions, contingent upon the project reaching
and maintaining 1,300 industrial jobs, according to Bloomberg.

The building was built in 1916 as a warehouse for the Department of
the Navy and was last occupied in 2000.

The project is part of the Bloomberg administration’s plan to remake
Brooklyn’s industrial waterfront. Salmar is seeking a Leadership in Energy and Environmental Design Silver rating for the building.

“The development of Federal Building #2 will not only create 1,700
much-needed permanent and construction jobs for Brooklynites and New
Yorkers, but bring more light manufacturing and retail space to
Brooklyn and Sunset Park,” said Brooklyn Borough President Marty
Markowitz. –– Miranda Neubauer