BK office developers wish their projects were even bigger

Midtown Equities, Quinlan and others on hungry tenants, low vacancies

New York /
Jun.June 17, 2015 10:35 AM

Faced with an unanticipated wave of tenant demand for large office spreads in Brooklyn, developers are regretting not being more aggressive with their projects.

“I wish our building was five times as big,” Tim Quinlan, whose Quinlan Development Group is building a 257,000-square-foot office conversion at 41 Flatbush Avenue in Downtown Brooklyn, said Tuesday.

Jack Cayre of Midtown Equities, which is behind the proposed Dumbo office complex Empire Stores, echoed Quinlan’s thoughts. Office tenants are seeking as much as 100,000 square feet for a single space in Brooklyn, in sharp contrast to the market just a few years ago, the developers said during a panel at TerraCRG’s Only Brooklyn Summit at the Brooklyn Academy of Music.

Quinlan, Cayre, Heritage Equity Partners CEO Toby Moskovits, LIVWRK CEO Asher Abehsera and the Downtown Brooklyn Partnership’s Tucker Reed gathered to discuss the booming interest in the borough’s office market.

“A residential developer for the last 10 years choosing to build office – it’s unheard of,” TerraCRG broker Dan Marks, who moderated the panel, said, referring to Quinlan.

High-profile tenants now in Brooklyn include Amazon and Etsy. These firms employ people that already live in the borough or are looking to move there.

Financial and health care firms are also looking from a break from high Manhattan office rents, Reed said.

Tenants often want to take half a building and sometimes, all of it, said Abehsera, who is co-developing the Dumbo Heights complex with Kushner Cos., Invesco and Aby Rosen’s RFR Realty.

Moskovits, meanwhile, is developing an eight-story Williamsburg office building at 25 Kent Avenue – the first Brooklyn spec office property in years. She secured a $70 million construction loan late last year.

“It’s hard to finance spec office buildings ground-up and it’s equally hard to buy in strange areas,” Moskovits said, “but the demand is there.”


Related Articles

arrow_forward_ios
1000 Dean Street with Jamie Hodari and Asher Abehsera (Google Maps)

Industrious expands with 21K-sf space in Crown Heights

Industrious expands with 21K-sf space in Crown Heights
Toby Moskovits, Fortress managing director Spencer Garfield and the 215 Moore Street Site (Moskovits by Sasha Maslov)

Toby Moskovits’ Bushwick Generator thrown into receivership

Toby Moskovits’ Bushwick Generator thrown into receivership
A deserted Brooklyn retail corridor along 4th Avenue in Park Slope (Credit: Google Maps)

“Overwhelming majority” of Brooklyn retailers asking for rent relief: report

“Overwhelming majority” of Brooklyn retailers asking for rent relief: report
Dean & Deluca CEO Sorapoj Techakraisri and Midtown Equities founder Joseph Cayre (Credit: Craig Barritt/Getty Images, Facebook, iStock)

In Chapter 11 filing, Dean & DeLuca reveals it owes Midtown Equities $22M

In Chapter 11 filing, Dean & DeLuca reveals it owes Midtown Equities $22M
The Williamsburg Hotel at 96 Wythe Avenue and from top: Benefit Street Partners' managing director Micah Goodman, receiver Constantino Sagonas and Heritage Equity Partners’ Toby Moskovits (Credit: Google Maps)

Williamsburg Hotel dispute escalates as pandemic raises stakes

Williamsburg Hotel dispute escalates as pandemic raises stakes
Caught up in a dozen recent lawsuits, Brooklyn developer Toby Moskovits blames her firm’s debt troubles on “collusion” and a “personal vendetta” (Illustration by The Real Deal; Moskovits by Sasha Maslov)

Creditors are banging on Toby Moskovits’ door

Creditors are banging on Toby Moskovits’ door
Heritage Equity Partners Toby Moskovits and Michael Lichtenstein

Lawsuit: Toby Moskovits, Michael Lichtenstein owe investor $3M

Lawsuit: Toby Moskovits, Michael Lichtenstein owe investor $3M
Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default
arrow_forward_ios

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

Loading...