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
Mayor Bill de Blasio (Getty; Google Maps)

Inwood rezoning is a done deal

Inwood rezoning is a done deal
A rendering of Gowanus Green and HPD commissioner Louise Carroll (Rendering via Jonathan Rose Companies)

Massive Gowanus development will be 100% affordable

Massive Gowanus development will be 100% affordable
A rendering of the Flushing waterfront and City Planning commissioner Michelle de la Uz (Rendering via Hill West Architects; New York Housing Conference)

City Planning approves Special Flushing Waterfront District

City Planning approves Special Flushing Waterfront District
Mayor Bill de Blasio and Greenwich Village Society for Historic Preservation's Andrew Berman (Photos via Getty; iStock; Neighbor2Neighbor Greenwich Village)

Move over, artists: Soho rezoning blueprint calls for more apartments, legal retail

Move over, artists: Soho rezoning blueprint calls for more apartments, legal retail
City Council member Brad Lander and the Gowanus canal (Getty; City Council)

Gowanus rezoning community support hinges on NYCHA funding

Gowanus rezoning community support hinges on NYCHA funding
City Planning commissioner Marisa Lago and Governors Island (Getty)

Governors Island rezoning process is underway

Governors Island rezoning process is underway
Mayor Bill de Blasio (Getty, iStock)

The battle to rezone Soho is just beginning

The battle to rezone Soho is just beginning
Mayor Bill de Blasio (iStock; Getty)

Soho to be rezoned: de Blasio

Soho to be rezoned: de Blasio
arrow_forward_ios

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

Loading...