The Real Deal New York

Two Trees closes on $53M leasehold purchase of Gowanus site

Company is still in contract on another portion of the site
By Eddie Small | April 18, 2018 02:30PM

 118 Second Avenue and Jed Walentas

118 Second Avenue and Jed Walentas

Two Trees Management has closed on the $53 million purchase of a leasehold for a Gowanus property that is currently home to a Lowe’s.

The company acquired 118 Second Avenue, a property that spans 400,000 square feet and has the potential for a roughly 800,000-square-foot project, according to sources familiar with the deal.

Forest City Ratner sold the Lowe’s site, and a TerraCRG team team led by Dan Marks, Ofer Cohen and Daniel Lebor brokered the deal.

Two Trees also reportedly paid about $65 million for a nearby Pathmark site at 1-37 12th Street, consisting of a 700,000-square-foot building and a 100,000-square-foot parking lot, although that deal has not closed yet. (TerraCRG is brokering that deal as well.)

Two Trees did not respond to a request for comment about the company’s plans for the site, although Marks noted that Lowe’s still has a long-term lease in place at the property.

The Real Deal recently ranked Two Trees as the most active developer in Brooklyn by square footage with about 1.74 million square feet of projects.

A rezoning in Gowanus is likely on the way, and local Council member Brad Lander expects it to go smoothly. Domain Companies recently purchased 420 Carroll Street in the neighborhood for $47.5 million  and 545 Sackett Street for $26.5 million.