SL Development bought the former umbrella factory at 722 Metropolitan Avenue in Williamsburg for $23 million, where it plans to convert the building into 69 condominiums.
The Midtown South-based firm headed by principals Ray Steffen and Page Leidy bought the building from longtime owner Barnett Brickner. The site comes with about 70,000 square feet of development rights, and the new owners plan to add four stories on top of the existing brick building with retail on the ground floor.
The deal was not without complications. Brickner was in contract twice to sell the property, deals that were complicated by news of the L train shutdown and a battle with artist tenants who allegedly tried to gum up the sale.
Brickner had at one point been asking $26 million for the property. Steffen said the Metropolitan Transportation Authority’s plan to shut down the L Train between Manhattan and Brooklyn for 15 months starting April 2019 “absolutely” affected pricing on the deal.
“The market is down 10 to 15 percent,” said Steffen, who added the project is about two years away from completion.
Madison Realty Capital provided SL Development with a $53.5 million loan for acquisition and development of the property.