Two Trees Management is in talks to purchase the Domino Sugar Factory site on the Williamsburg waterfront for $160 million, the New York Daily News reported. The property’s owners, Community Preservation Corp. and the Katan Group, have engaged in a legal battle over development plans in recent months, and Katan is planning to block a sale to Two Trees.
The site was first reported to be hitting the sales block in March as CPC faced financial difficulties on the site, in part because of rampant real estate speculation during the boom. Consequently, Katan Group filed suit against CPC alleging mismanagement of the property.
The plan for the sugar factory calls for the $2 billion development of 2,200 housing units, including 600 affordable ones, on the waterfront. Katan and CPC acquired the development site for $55 million in 2005 and spent years clearing development hurdles at the property. Katan believes CPC is undervaluing the asset and that it should get $200 million in a sale.
Crain’s reported that Two Trees has already signed a preliminary term sheet for the purchase. “Two Trees understands waterfront development, is well-capitalized and is the best chance for this site to get developed into the mixed-income, mixed-use community it was intended to be,” said CPC CEO Rafael Cestero, who added that proceeds from the sale will enable CPC to fund affordable projects elsewhere. [NYDN] and [Crain’s]