Borough Developers, a Brooklyn-based company, has acquired a large mixed-use development site in Downtown Brooklyn. The site is located directly opposite a new retail project in a former Macy’s building. It comprises the addresses 485 Fulton Street and 147 Lawrence Street, an area of 33,153 square feet, known as the Bridge & Fulton Development Site.
The acquisition was made from ICER Real Estate for US$83.5 million. JLL brokered the deal for both parties. For the transaction, Borough Developers secured an acquisition and pre-development loan of US$85 million from BridgeCity Capital.
EJ Ehrlich, Director of Originations at BridgeCity, highlighted the rapid completion of the deal: the transaction was finalised in just 16 days, underscoring the company’s ability to act quickly and under tight deadlines. He added that this reflects the company’s continued expertise in structuring and implementing complex financing solutions for high-value development sites in New York City.
Extensive Construction Plans
Last month, Shimon Kleinman, co-founder of Borough Developers, submitted plans to the New York City Department of Buildings envisioning the construction of three residential buildings, each with 99 units, on the site. This indicates that the developer is likely looking to utilise the state tax incentive programme 485-x. This programme is associated with higher wage requirements for construction projects of 100 or more units.
Kleinman’s initial submission would provide a total of 297 residential units on the site. BridgeCity, however, stated that the building is intended to include a total of 468 residential units, commercial spaces, and amenities. JLL, which noted that the planned number of units might still change, explained that the project would comprise four buildings with ground-floor retail space and residential units above. The development site boasts 350,000 buildable square feet.
The existing 139,438-square-foot building on the site, which currently houses a barbershop, will be demolished to make way for the new homes. Ethan Stanton, Michael Mazzara, and Brendan Maddigan of JLL represented both the seller and the buyer.
Attractive Location in Downtown Brooklyn
Michael Mazzara commented on the significance of the sale: it demonstrates investors' continued conviction in Downtown Brooklyn and, more generally, the value developers place on well-located sites where they can create housing on a sensible scale. He emphasised that there are few opportunities of this magnitude in a neighbourhood with this level of public transport connectivity, housing demand, and established retail. The combination of size, location, and development flexibility makes 485 Fulton particularly attractive.
Kao Hwa Lee Architects is registered as the architect for Kleinman’s submitted plans. The planned mixed-use project is located directly opposite the former Macy’s department store at 422 Fulton Street, which is being redeveloped into a five-storey retail and entertainment complex called BKX.
