The Real Deal New York

Morgan Stanley fund pays $47M for easement rights to Con Ed substation

The site is connected to a New Jersey facility that the fund recently acquired for $900M
By Christian Bautista | October 15, 2018 05:48PM

Morgan Stanley’s Markus Hottenrott and the site at 109 25th Street in Brooklyn (Credit: Morgan Stanley and Google Maps)

Morgan Stanley Infrastructure paid nearly $47 million to gain easement rights to a Consolidated Edison substation in Brooklyn, according to records filed with the city today.

The property, with the address of 109 25th Street, occupies a 38-acre portion of the Gowanus waterfront. The site stretches from 25th to 28th streets, east of Gowanus Bay and west of Third Avenue and the Gowanus Expressway, according to a filing with the Environmental Protection Agency.

The owner of the site is Australian firm Macquarie Infrastructure Corporation. Portions of the site were previously condemned and claimed by the city through eminent domain in the mid-1960s. By the 1980s, parts of the site were used as a loading dock and equipment storage space for defunct shipping company Moore McCormack Lines. Macquarie did not respond to requests for comment.

The transaction is connected to a larger sale across the Hudson River. Last August, Macquarie sold the Bayonne Energy Center, a power generation facility in Bayonne, New Jersey that powers about half a million homes in Manhattan, Brooklyn, Queens and Staten Island. Morgan Stanley bought the property for $900 million in cash and assumed debt. The Bayonne facility is connected to the Gowanus site through a 6.75-mile-long high-voltage cable, according to a petition filed with the State of New York Public Service Commission.

Morgan Stanley previously raised $3.6 billion to fund investments in the infrastructure sector. The firm did not respond to requests for comment.