Whole Foods arrival bolsters rising rents in Gowanus

TRD New York /
Dec.December 05, 2013 02:45 PM

The industrial neighborhood lining the notoriously noxious Gowanus Canal is well on its way to becoming the next Dumbo — an ascension hurried along by the arrival of Whole Foods.

As interest from tenants and property buyers surges, rents are on the rise and posh new commercial outfits such as the Pines restaurant at 284 Third Avenue, which serves a $32 venison sirloin, are setting up shop.

“I’m getting calls from tenants moving out of Dumbo due to $50 per-square-foot rents,” Bob Klein, a broker with Brooklyn-based commercial brokerage Kalmon Dolgin Affiliates, told the Brooklyn Eagle.

Not that the nabe isn’t well on its way to catching up. Commercial space in Gowanus was as cheap as $6 per square foot only 15 years ago, Klein said, and is now in the low $20s for “creative tenants” and as much as $35 per square foot for retail spaces.

Mukeshkumar Patel, Whose Globiwest Firm Operates Hotel Le Bleu On Fourth Avenue, purchased a site that is currently home to little more than weeds at 399 Third Avenue for $1.95 million last year and plans to erect a six-story, 58-room hotel on the site. An LLC associated with Gorilla Coffee shelled out $1.15 million for a building at 498 President Street last year. In comparison, the soon-to-be site of a four-unit residential building at 465 Carroll Street was purchased by the Franzese Group for $700,000 in 2008, according to city records cited by the Brooklyn Eagle. [Brooklyn Eagle]Julie Strickland


Related Articles

arrow_forward_ios
Lighstone Group CEO David Lichtenstein and 365 Bond Street in Brooklyn (Photos via Lightstone; 365bond; iStock)

Lightstone bought Gowanus parcels for a pittance, seller’s sons allege

Lightstone bought Gowanus parcels for a pittance, seller’s sons allege
Brad Lander, Bill de Blasio and Gowanus (Getty)

Group launches campaign to save Gowanus rezoning

Group launches campaign to save Gowanus rezoning
Council member Brad Lander and Gowanus (Credit: Lander by Erik McGregor/Pacific Press/LightRocket via Getty Images, Spencer Platt/Getty Images)

Will Gowanus be the next botched rezoning?

Will Gowanus be the next botched rezoning?
Stephen Levin, Brad Lander, 187 and 195 Hoyt Street (Credit: Google Maps, iStock)

Pols ponder NYCHA air rights sale for Gowanus

Pols ponder NYCHA air rights sale for Gowanus
Avery Hall principal Brian Ezra and a rendering of 204 Fourth Avenue (Credit: Avery Hall and Startup Columbia)

Avery Hall pays $30M for Gowanus site

Avery Hall pays $30M for Gowanus site
Clockwise from left: 532-542 Union Street and 232 Third Avenue in Gowanus, Tavros' Colin Rankowitz and Avery Hall's Brian Ezra (Credit: Terra CRG, Tavros, Avery Hall)

Gowanus gold rush: Avery Hall, Tavros, Charney buy sites for $55M

Gowanus gold rush: Avery Hall, Tavros, Charney buy sites for $55M
An aerial of 469 President Street, 473 President Street, 514 Union Street (Credit: Google Maps)

Avery Hall Investments buys Gowanus development site for $44M

Avery Hall Investments buys Gowanus development site for $44M
M&T CEO René Jones and Brookfield managing partner Ben Brown with 5 Manhattan West (Credit: M&T, Brookfield, and Wikipedia)

Brookfield lands $184M refinancing for Manhattan West retail

Brookfield lands $184M refinancing for Manhattan West retail
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...