The Naftali Group closed on one of the last large-scale development sites on the Williamsburg waterfront.
Miki Naftali’s development firm purchased the Rose Plaza site at 470 Kent Avenue for just over $102 million, the company announced Thursday.
Naftali acknowledged the challenges the Covid-19 pandemic has presented to the development market, but said he sees strong demand for when the 470 Kent project eventually comes online.
“These types of projects take years to design and develop and we look forward to completing and occupying 470 Kent when the market recovers,” he said.
Naftali went into contract to buy the site — a lumber yard long owned by Abraham Rosenberg — earlier last year for about $180 million, as The Real Deal reported at the time. Sources familiar with the deal said Naftali finalized only a portion of the purchase this week and intends to close on the remainder of the site at a later date.
All told, the property has about 800,000 square feet of development rights.
JLL’s Brendan Maddigan and Ethan Stanton negotiated the deal for the seller along with Robert Burton, Bobby Carrozzo and Vinny Puzio at Cushman and Wakefield.
Maddigan said the fact that the deal closed during the coronavirus-induced shutdown is a good indicator that long-term demand hasn’t taken a major hit.
“A developer making a purchase of this scale during these challenging times shows real commitment and confidence in New York City,” he said.
HSBC provided Naftali with financing for the acquisition.
Contact Rich Bockmann at [email protected] or 908-415-5229