The Real Deal New York

Gazit-Globe buys Williamsburg retail condo for $47M

Madison Marquette had put condo on the market for $50M last year
By Eddie Small | July 16, 2018 01:50PM

Jeff Mooallem and The Edge at 34 North 7th Street in Brooklyn

Israeli company Gazit-Globe has made another major purchase in the Brooklyn retail market.

The firm purchased the retail condo of the Edge in Williamsburg from Madison Marquette for $47.3 million, according to property records. Madison Marquette put the property on the market last year for $50 million.

The retail condo spans about 60,000 square feet, and tenants include CVS and Brooklyn Harvest Market. Madison Marquette bought the space with a silent partner for $45.5 million in 2014.

The Edge also has more than 1,450 residential units, but Gazit is only purchasing the retail portion of the complex.

Madison Marquette’s asking price was very close to its purchase price, which was seen as a sign of retail’s ongoing struggles. However, Gazit-Globe CEO Jeff Mooallem said the firm had been trying to break into Williamsburg and was confident that it was still a solid investment.

“It’s like a trade in baseball: you can’t say if it’s good or bad until you see how it all works out, but we feel good about the asset,” he said. “We’re long term holders, and we’re happy to add to our New York portfolio.”

Madison Marquette did not immediately respond to a request for comment.

Gazit invested about $40 million in the Brooklyn shopping center Caesar’s Bay Bazaar earlier this year.  Mooallem told The Real Deal in an interview last year that the company had about $2 billion of potential spending power, which it planned to use on retail in major American cities.