Garment biz leases 80K sf at Brooklyn Army Terminal

New York Embroidery Studio, founded in Midtown, shifts to Sunset Park

New York Embroidery Studio's Michelle Feinberg and the Brooklyn Army Terminal (New York Embroidery Studio, Getty, iStock)
New York Embroidery Studio's Michelle Feinberg and the Brooklyn Army Terminal (New York Embroidery Studio, Getty, iStock)

New York Embroidery Studio has signed the largest lease at the Brooklyn Army Terminal in three years, city officials announced Friday.

The local company is taking nearly 80,000 square feet at the city-owned manufacturing hub at 140 58th Street in Sunset Park. The lease will generate an estimated $73 million for New York City and create 500 on-site jobs, according to a news release from Mayor Eric Adams.

Brooklyn Army Terminal is managed by the New York City Economic Development Corporation, the city government’s primary landlord. The self-funded agency aims to advance the city’s economic goals and sometimes rents space at below-market rates to do so.

A former military base, the terminal leases space to dozens of companies, ranging from food and aerospace manufacturing to the life sciences and museums.

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“As we continue to invest in the city’s garment manufacturing sector, this is a great opportunity to support an innovative, women-led business providing life-saving personal protective equipment to medical professionals across the country,” said Maria Torres-Springer, deputy mayor for economic and workforce development, in a statement.

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City officials have been trying to shift garment-making operations out of their traditional Midtown enclave to lower-rent portions of the city such as Sunset Park, freeing up space in the central business district for more lucrative businesses. That was the premise of a controversial Garment District rezoning during the de Blasio administration.

Founded in 2001 by Michelle Feinberg in the Garment District, New York Embroidery Studio provides embellishment and specialized services to fashion designers. Its customers have included Tory Burch, Thom Browne and Coach. During the pandemic, the company pivoted to manufacturing personal protective equipment.

RegenLab USA, a device manufacturer for the production of regenerative cell therapy, opened a research and manufacturing lab at the Brooklyn Army Terminal in November. The initial stage of the company’s $10 million project takes up 15,000 square feet at the terminal and cost $2.5 million.

A planned lab expansion in May will cost another $3.5 million, with the company ultimately expecting to reach 35,000 square feet in 2023 as it makes the terminal its Americas headquarters.

Over a year ago, Guggenheim Museum renewed its 31,400-square-foot lease for its storage facility at the Brooklyn Army Terminal. IEH Corporation, a manufacturer of electronic parts for aerospace and military technologies, and eyeglass maker Lowercase NYC also renewed their leases of 20,400 and 2,160 square feet, respectively.

The Commercial Observer reported at the time that space at the terminal goes for $18 to $22 per square foot.