Scott Rechler shepherded a Clinton Hill website by a rezoning course of. Then he bought it — at a loss.
RXR bought the full-block improvement website at 47 Corridor Avenue within the Brooklyn neighborhood to Yitzchok Schwartz’s YS Builders for $121.4 million, the Business Observer reported. The deal for the vacant 550,000-square-foot website breaks all the way down to roughly $221 per sq. foot.
It’s unclear how a lot RXR misplaced on its funding within the 10-block assemblage, tucked between the Brooklyn-Queens Expressway and Flushing Avenue. However the agency purchased the location in 2016 for $161 million, initially desiring to convert it into luxurious workplace area earlier than the pandemic introduced renovations to a halt.
YS Builders couldn’t be reached for remark, whereas RXR didn’t reply to the publication’s request for remark.
Rechler did depart YS with a parting reward; the location landed approval for a rezoning shortly after scoring key political support over the summer time. Schwartz’s agency intends to maneuver ahead with these plans, a campus that may span 933,000 sq. toes with 620 residences — together with between 150 and 180 inexpensive models — 48,000 sq. toes of retail area, 161,000 sq. toes of self-storage area and 36,000 sq. toes for parking.
The property has been vacant since 2023, when it was leased to New York Metropolis Well being + Hospitals for use as a migrant shelter. Parts of the area briefly housed greater than 3,000 asylum seekers; the lease for the well being and hospital system expired final March.
Across the similar time RXR was getting approval in Clinton Hill, YS Builders was moving forward with a controversial mission at 960 Franklin Avenue in Crown Heights, planning 300 rental models with a projected sellout of $273 million.
The seven-story constructing is about to characteristic one- to two-bedroom condos, with costs beginning below $600,000 for a one-bedroom and reaching roughly $1.6 million for a two-bedroom on the highest flooring.
There have been years of disputes and rejected proposals for the location, together with earlier plans by Bruce Eichner for considerably taller towers that had been opposed resulting from issues about shadowing the Brooklyn Botanic Backyard.
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