Two Trees completes Gowanus assemblage with $62M deal

Developer had closed on adjacent site for $53M in April

TRD New York /
May.May 24, 2018 11:00 AM

1-37 12th Street and Jed Walentas (Credit: Google)

Two Trees Management has closed on part two of its $115 million Gowanus assemblage.

The company purchased 1-37 12th Street for $62 million, according to TerraCRG,  which brokered the sale. The site includes a former Pathmark store, and it is right next to the roughly 400,000-square-foot Lowe’s site at 118 Second Avenue that Two Trees closed on in April for $53 million.  The assemblage spans almost 15 acres and about 1.25 million buildable square feet overall.

A TerraCRG team led by Dan Marks, Ofer Cohen and Daniel Lebor brokered both deals. Forest City Ratner sold the Lowe’s site, and Team Slope LLC — a joint venture between Meral Property Group and Joyland Group — sold the Pathmark site.

The city is likely to rezone Gowanus in the near future, and developer Domain Companies recently bought two sites in the neighborhood — 420 Carroll Street for $47.5 million and 545 Sackett Street for $26.5 million — with an eye on building a larger project.

However, Marks said Two Trees does not seem to be following this strategy and noted that Lowe’s has a long-term lease on the Second Avenue site. He described the assemblage as a very long-term investment and said that the company’s short-term plans likely just involve leasing to commercial tenants.

“While the north side of Gowanus is under discussion for rezoning, this portion is slated to remain a commercial and industrial enclave for some time,” he said in a statement.

Two Trees managing director David Lombino echoed this, saying that the company does not plan to pursue a rezoning in the near future but still believes that there are “far more productive and innovative long-term uses for the Pathmark and Loew’s sites than acres of underutilized parking and low-paying retail jobs.”

At TerraCRG’s May 16 Only Brooklyn conference, Two Trees CEO Jed Walentas said on a panel that Gowanus remained a difficult neighborhood to build new office or industrial properties.

“It’s still kind of nowhere,” he said. “I think my son and daughter will be super appreciative someday, and someday it’ll probably change.”

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


Related Articles

arrow_forward_ios
155 West 11th Street and 1100 Park Avenue (FXFOWLE; Google Maps)

Manhattan luxury market shows tentative signs of activity

Manhattan luxury market shows tentative signs of activity
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
16 Sutton Place (Credit: Google Maps)

Sutton Place co-op in turmoil over terrace fees

Sutton Place co-op in turmoil over terrace fees
Molly Townsend (Getty, iStock)

Ex-Douglas Elliman sales manager Molly Townsend joins Triplemint

Ex-Douglas Elliman sales manager Molly Townsend joins Triplemint
New home listings in Manhattan are up for the 4th week in a row. Contract signings, not so much. (Getty; iStock)

Manhattan resi listings are up while contracts “limp along”

Manhattan resi listings are up while contracts “limp along”
The process for challenging property assessments is so antiquated, officials won’t do Zoom meetings. (iStock)

“A recipe for disaster”: Fighting property taxes in a pandemic

“A recipe for disaster”: Fighting property taxes in a pandemic
Council member Brad Lander and Gowanus (Credit: Lander by Erik McGregor/Pacific Press/LightRocket via Getty Images, Spencer Platt/Getty Images)

Will Gowanus be the next botched rezoning?

Will Gowanus be the next botched rezoning?
102 Prince Street and Jho Low (Credit: Modlin Group; Low by Michael Loccisano/Getty Images for New York Times)

Jho Low’s former Soho condo sells at a discount

Jho Low’s former Soho condo sells at a discount
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...