Witkoff to advise on Downtown Brooklyn project

Fulton Street site was marketed after loan default

The assemblage at 547-557 and 559-589 Fulton Street, RedSky Capital’s Benjamin Bernstein and Steve Witkoff (Google Maps; ICSC; Witkoff)
The assemblage at 547-557 and 559-589 Fulton Street, RedSky Capital’s Benjamin Bernstein and Steve Witkoff (Google Maps; ICSC; Witkoff)

UPDATED, Nov. 5 2020, 3 p.m.: Witkoff has come on board as a development partner on Downtown Brooklyn’s “Brooklyn Bowtie” project, Commercial Observer reported.

The 36,290-square-foot assemblage at 547-557 and 559-589 Fulton Street, which RedSky Capital and JZ Capital started acquiring in 2012, was marketed for sale after the project’s $154.6 million loan went into default in March.

“It’s very early days,” a source told the publication. “Options are now being explored as to what makes the most sense.”

The marketing effort, led by Cushman & Wakefield, reportedly generated several competitive offers. Witkoff was brought on to advance the project and “refine” ideas for it, according to CO.

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Steve Witkoff has not commented publicly on the deal.

In addition to putting financial pressure on the project, the pandemic may also influence what is built at the site. The original vision was for mixed-use development with both multifamily units and retail space, but the use for that ground-level space may now be reconsidered.

CORRECTION: An earlier version of this story stated that Witkoff joined RedSky Capital and JZ Capital as a partner. Witkoff was hired as an adviser. An earlier version also stated that Witkoff acquired a minority stake in the project; its financial involvement in the project is not known at this time.    

[CO] — Sylvia Varnham O’Regan