The Real Deal New York

Westbrook, Invesco eye position in huge Brooklyn property

Deal could value 47 Hall Street at north of $300M
By Rich Bockmann and Hiten Samtani | September 21, 2015 01:35PM

Westbrook Partners and Invesco Real Estate are among the investors bidding on a massive industrial building near the Brooklyn Navy Yard in a deal that could value the property north of $300 million.

The institutional investors are vying for what is most likely a minority stake in 47 Hall Street, a 550,000-square-foot warehouse in Clinton Hill owned by partners Bruce Federman, Rubin Schron’s Cammeby’s International and Eli Fruchthandler , sources told The Real Deal.

The deal would most likely be similar to the partners’ more high-profile Brooklyn property, Industry City, where they brought on investors Belvedere Capital, Jamestown and Angelo, Gordon & Co. to infuse cash into a redevelopment of the industrial campus.

A 49-percent stake in 47 Hall could be worth up to $165 million, one source with knowledge of the property said. Much like Industry City a few years ago, the building is mostly occupied by small commercial tenants paying rents of between $6 and $8 per square foot.

The ownership has stopped renewing leases in anticipation of a future overhaul, the source said.

Federman could not be immediately reached for comment. Jamestown’s Andrew Kimball is overseeing the transformation of Industry City after the partners committed $100 million to the first phase of the renovation project.

Westbrook and Invesco have made other large industrial redevelopment plays.  Last month, Westbrook paid $200 million to take a majority position in the 1.1-million-square-foot St. John’s Terminal in Hudson Square. And Invesco is a large investor in Dumbo Heights, a 1.2 million-square-foot Brooklyn complex being developed by Kushner Companies, RFR Realty and Asher Abehsera’s LIVWRK.