After two failed attempts, Soho’s Tootsie Roll factory will finally become luxury condos in just two years time, Crain’s reported. Last week developer DDG Partners closed on the vacant Lehman Brothers Holdings owned building for $38.35 million and will begin demolition in 60 days.
DDG’s plans call for the destruction of the two existing buildings facing West Broadway and for the preservation of the two buildings on Wooster Street. A central courtyard, designed by DDG Design and Beyhan Karahan Architects & Associates, will connect the buildings. The site is shovel-ready and the conversion has been already been approved by the city Department of Buildings and the Landmarks Preservation Commission.
According to Joseph McMillan, chief executive of DDG, the final product will be similar to DDG’s 41 Bond Street development in NoHo. 41 Bond is a 10-story luxury condominium composed of seven units that range in size from 3,000 square feet to 6,000 square feet. The building saw an average selling price of $2,500 per square foot.
“I believe it is the most attractive site in all of SoHo,” McMillan said. “It’s a great location and prime for residential development.”
ADG-Soho, purchased the factory, located at 325 West Broadway at Grand Street, from Tootsie Roll Industries for $23 million. But in 2009, it defaulted on its $27 million loan and Lehman foreclosed. Lehman attempted to partner with developer LCOR to revise plans and re-develop the site, but Lehman ultimately backed out of the deal, deciding to sell the property. [Crain’s] – Christopher Cameron