Thor abandons plans for 800K-sf Red Hook office complex

Joe Sitt's firm now making a last-mile warehouse play: source

New York /
Feb.February 15, 2019 06:47 PM

A rendering of Thor Equities’ Red Hook Point at 280 Richards Street and Joseph Sitt

Joseph Sitt’s Thor Equities is scrapping plans for an 800,000-square-foot office complex on the Red Hook shoreline, a source told The Real Deal. Instead, it now plans to build last-mile warehousing on the site.

In October, another source with knowledge of Sitt’s thinking said the developer was torn between pursuing a plan to build a pair of office buildings on the site, a former sugar factory, and going industrial instead. The two four-story buildings Sitt planned to build were designed by world-renowned architect Norman Foster and featured timber construction, an environmentally friendly “green’’ roof with plantings and service by water taxis. Thor first unveiled the plan, dubbed “Red Hoek Point,” in 2016.

A spokesperson for Thor declined to comment.

Thor’s website continues to display those plans, which it calls “a revolutionary office campus.’’ It says it was designed to appeal to millennials and creative companies that have been proliferating in Brooklyn in recent years, though the Brooklyn office market many envisioned hasn’t quite materialized.

In pivoting away from an office project at 280 Richards Street, Thor is joining a number of notable firms placing big bets on the demand brought by e-commerce.

Scott Rechler’s RXR Realty, in partnership with Los Angeles-based LBA Logistics, in November said they had plans to build a multi-story warehouse on a property in the Maspeth section of Queens that they had bought for more than $70 million earlier in 2018. And just this week, Blackstone Group paid $55.5 million for a two-story industrial building near Queens’s LaGuardia Airport, after earlier paying $7.6 billion for Gramercy Property Trust, whose 81 million square feet of buildings consists mostly of single-tenant industrial properties.

And Dov Hertz, the former Extell Development assemblage expert, is planning a 1.3 million-square-foot distribution center in Sunset Park at 75-81 20th Street.

It’s not immediately clear how far along the developer is in planning an industrial project.


Related Articles

arrow_forward_ios
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

The 10 biggest new project filings in NYC

The 10 biggest new project filings in NYC
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)

Santa Monica mega-portfolio officially hits market

Santa Monica mega-portfolio officially hits market
A rendering of 250 Water Street and Howard Hughes Corporation CEO David O'Reilly (SOM; Getty; iStock)

Howard Hughes’ Seaport project dealt major blow

Howard Hughes’ Seaport project dealt major blow
Ray McGuire photographed by Axel Dupeux.

The Closing: Ray McGuire

The Closing: Ray McGuire
SK Development's Scott Shnay and Ironstate's Michael Barry (Google Maps, Scott Shnay via LinkedIn)

Noho offices move forward where city wants housing

Noho offices move forward where city wants housing
Gov. Andrew Cuomo and Brookfield’s Brian Kingston with the High Line and the Moynihan Train Hall (Getty)

New High Line section will connect to Moynihan Train Hall

New High Line section will connect to Moynihan Train Hall
Mickey Rabina and 520 Fifth Ave. (Rabina, Ceruzzi Properties)

Rabina files plans for 70-story tower at beleaguered Fifth Ave site

Rabina files plans for 70-story tower at beleaguered Fifth Ave site
arrow_forward_ios

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

Loading...