Nonprofit Phipps Houses to buy 300,000 sf East New York site for $38M

City plans to rezone burnt-out lot for manufacturing, industrial and resi uses

New York /
May.May 29, 2015 01:57 PM

Nonprofit developer Phipps Houses is in contract to buy a burnt-out former food-processing plant that’s part of the city’s East New York rezoning plan for $38 million, The Real Deal has learned.

Seller Laundry Capital, headed by laundromat kingpin Alex Weiss, acquired a distressed note last year on the Blue Ridge Farms facility at Atlantic Avenue and Chestnut Street, which covers some 300,000 square feet spread across a handful of properties around the ruined factory.

Laundry Capital declined to comment and Phipps Houses did not respond to requests. Phipps,s the largest non-profit operator of affordable housing in the city, is currently developing two residential towers at Hunters Point South in Queens with partners the Related Companies and Monadnock Construction.

Blue Ridge, which processed foods like salads and coleslaw, was once one of the city’s largest manufacturers. But the company fell on hard times in 2004, and owners Jeffrey and Richard Siegel brought on as a partner Thomas Kontogiannis, who would later plead guilty in what was one of the largest mortgage-origination fraud cases on record.

The Siegel brothers claimed Kontogiannis looted the company and failed to make payments, threatening the property with foreclosure. In 2005, the brothers relinquished their portion of the business to Kontogiannis and the factory closed sometime thereafter.

The building has been a burnt-out shell ever since a fire ripped through it in 2012. As part of Mayor Bill de Blasio’s proposed rezoning of East New York, the city would like to see the property transformed into a mixed-use district with industrial, commercial and residential facilities.


Related Articles

arrow_forward_ios
A judge declined to issue a temporary restraining order blocking the Soho rezoning. (Getty)
Judge declines to block Soho rezoning; proposal remains on hold
Judge declines to block Soho rezoning; proposal remains on hold
Renderings of 310 East 67th Street and Longfellow Real Estate Partners CEO Adam Sichol (Friends UES, Rendering by DBOX, Longfellow)
Blood Center’s plans for big Upper East Side HQ draw criticism
Blood Center’s plans for big Upper East Side HQ draw criticism
Judge Katherine Levine (Getty)
Gowanus rezoning may move forward as soon as Monday
Gowanus rezoning may move forward as soon as Monday
New York State Supreme Court judges Arthur Engoron, Verna Saunders and Katherine Levine (Illustration by Kevin Rebong for The Real Deal)
When big-time projects are stopped by small-time judges
When big-time projects are stopped by small-time judges
DHS Commissioner Steven Banks. (Getty, Google Maps)
City to open Soho homeless shelter
City to open Soho homeless shelter
City attorneys say an executive order signed by Mayor Bill de Blasio should spell the end of a lawsuit holding up the Gowanus rezoning (Getty/Illustration by Kevin Rebong for The Real Deal)
De Blasio wades into Gowanus rezoning, seeks dismissal of lawsuit
De Blasio wades into Gowanus rezoning, seeks dismissal of lawsuit
From left: Scott Stringer, Shaun Donovan, Maya Wiley, Andrew Yang, Kathryn Garcia and Eric Adams
Where mayoral candidates stand on real estate
Where mayoral candidates stand on real estate
BentallGreenOak founder Sonny Kalsi and 2300 Linden Boulevard in Brooklyn (Photos via BentallGreenOak; Google Maps)
Amazon warehouse in Brooklyn sells for $46M
Amazon warehouse in Brooklyn sells for $46M
arrow_forward_ios

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

Loading...