Less than 10 months after clearing the final hurdle for developing the 11-acre area surrounding the Domino Sugar factory in Williamsburg into 2,200 residential units, developer Community Preservation Corporation is exploring a sale of the site, the New York Observer reported.
CPC and partner Katan Group are looking to sell all or part of the waterfront $2 billion development, between South 5th and Grand streets that is slated to include at least 660 affordable units across four buildings of 30 stories or more. The landmarked Domino Sugar factory would be preserved under the plan.
Despite developers growing interest in the neighborhood, and especially the Williamsburg waterfront, the Observer noted that the property is ripe with challenges.
For one, the affordable housing component of the project, a point of emphasis for the current developers, hinders the financial prospects of the development. Further, while developers covet rental projects in the area, CPC and Katan’s plant to develop condominiums is risky because sales prices have yet to bounce back. Finally, the preservation of the sugar factory would likely require costly infrastructure upgrades. [NYO]