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New York

City offers $100M for CitiStorage site on Brooklyn waterfront

Norman Brodsky rejected the bid, with Massey citing $325M ask

CitiStorage site (inset: Norman Brodsky and Alicia Glen)
CitiStorage site (inset: Norman Brodsky and Alicia Glen)

City Hall made what seems to be a largely symbolic offer to buy the former CitiStorage site on the Williamsburg-Greenpoint waterfront.

The city offered to pay $100 million for the site, which the Bloomberg administration designated as part of the future Bushwick Inlet Park. The site’s owner, Norman Brodsky, did not accept the offer at a meeting Thursday. Cushman & Wakefield’s Paul Massey, who is marketing the property on Brodsky’s behalf, cited its $325 million asking price to explain the owner’s decision, the Wall Street Journal reported.

“We are delighted to include them in our process,” Massey, who is close to announcing his own mayoral candidacy, told the newspaper.

The East River-adjacent property, at North 11th Street, is zoned for 600,000 square feet of commercial development. A fire at the site in early 2015 destroyed the CitiStorage warehouse that gave it its name.

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A few months after that, Brodsky said he was looking to sell the property for as much as $500 million.

Back in December, the Related Companies, along with Midtown Equities and East End Capital, were reportedly in discussions to lend Brodsky and undisclosed sum on the site. The investors would reportedly have been able to ultimately convert their debt into an ownership stake in the property.

The city has sought to acquire the parcel for years, but announced in March 2015 that it was no longer affordable given the increases in land prices in the area over the past decade.

New York City Council Member Stephen Levin praised the apparent lowball offer, which was made the day after the City Council agreed on a budget with the mayor’s office.

“The de Blasio administration has really stepped up and has taken a great step forward,” he told the Journal. “This is proof that the city’s commitments carry through from one administration to another.” [WSJ] – Ariel Stulberg