Related making play for CitiStorage site in Williamsburg: report

Loan would give Hudson Yards developer option for future ownership stake in property

TRD New York /
Dec.December 29, 2015 02:42 PM

Related Cos. is reportedly in discussions to invest in the 11-acre CitiStorage development site on the Williamsburg waterfront in Brooklyn.

The Hudson Yards developer, led by founder Stephen Ross and CEO Jeff Blau, is negotiating with Midtown Equities and East End Capital to provide a loan to one of the owners of the site.

The agreement would enable the three investors to potentially convert the debt from the loan into an ownership stake in the property, according to Crain’s. Midtown Equities and East End Capital reportedly teamed to secure an option on the property earlier this year.

Neither the size of the loan provided by Related, nor the developer’s eventual ownership interest in the site, which is believed to be worth at least $250 million, were specified. Sources said the structure of the deal has yet to be finalized. The site spans nearly two full blocks along the East River at North 11th Street.

“There’s no deal in place at this time,” Norman Brodsky, one of the CitiStorage site’s owners, told Crain’s. “But I’m exploring all my options to refinance or sell.”

Brodsky would use proceeds from the loan to buy out current partners, such as investment firm Ares Management, and prepare the parcel for development while remaining a partner in the project.

The appearance of a major player like Related could be the boost needed to get the long-delayed project off the ground.

Related, Midtown Equities and East End Capital can build nearly 600,000 square feet of office and retail space under the site’s current zoning – an attractive proposition for builders as commercial tenants have expressed increased interest in Brooklyn neighborhoods like Williamsburg.

Brodsky was reportedly looking to sell the site for $500 million back in April. [Crain’s]Rey Mashayekhi

Related Articles

Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

93 North 9th Street in Williamsburg, Thor Equities' Joe Sitt, and a KAWS statue (Credit: Google Maps and Jim Bowen via Flickr)

Acclaimed artist KAWS pays $17M to expand Williamsburg studio

166 Berry Street in Brooklyn and Wharton Properties’ Jeff Sutton (Credit: Google Maps)

Jeff Sutton pays record price in Williamsburg: brokers

Huizenga lobbied Rick Scott to secure Opportunity Zone designation for West Palm site

Huizenga lobbied Rick Scott to secure Opportunity Zone designation for West Palm site

Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images)

It’s official: Facebook is taking 1.5M sf in Hudson Yards

A rendering of  280 Meeker Avenue CW Realty Management CEO Cheskie Weisz (CW Realty Management)

CW Realty to bring mixed-use project to troubled Williamsburg site

269 Wallabout Street in Williamsburg (Credit: Google Maps)

On to the next one: Rabsky planning yet another Brooklyn project

58 Union Avenue (Credit: Google Maps)

Brooklyn binge: Rabsky Group plans to bring 65-unit project to Williamsburg