Brooklyn Developer Picks Up Downtown Brooklyn Assemblage for $83.5 Million with Plans for Hundreds of Apartments

Brooklyn Developer Picks Up Downtown Brooklyn Assemblage for $83.5 Million with Plans for Hundreds of Apartments

Borough Developers has taken control of a prominent mixed-use development corner in Downtown Brooklyn, closing on the purchase of the Bridge & Fulton Development Site — comprising 485 Fulton Street and 147 Lawrence Street — for $83.5 million, according to JLL, which brokered the transaction on behalf of both the buyer and seller.

The 33,153-square-foot assemblage was sold by ICER Real Estate. Financing came by way of BridgeCity Capital, which provided an $85 million acquisition and pre-development loan. EJ Ehrlich, director of originations at BridgeCity, noted the deal moved from contract to closing in just 16 days, framing it as an example of the lender’s capacity to execute complex financing on tight timelines for New York City development sites.

Plans for the property are already taking shape. Last month, Borough Developers co-founder Shimon Kleinman filed applications with the New York City Department of Buildings calling for three residential buildings of 99 units each — a configuration that suggests the firm intends to qualify for the state’s 485-x tax abatement program, which imposes stricter construction wage requirements on projects of 100 units or more.

The initial filing contemplates 297 total units, though BridgeCity indicated the eventual project could reach 468 residential units along with commercial space and amenities. JLL cautioned that the unit count remains subject to change and described the plans as four buildings with retail on the ground floor and apartments above.

The site carries roughly 350,000 buildable square feet. An existing 139,438-square-foot structure — currently occupied by a barber shop — is slated for demolition to clear the way for the new development. The location sits directly across from the retail project under way at the former Macy’s on Fulton Street, an area that has drawn continued residential and commercial investment.

JLL’s brokerage team of Ethan Stanton, Michael Mazzara and Brendan Maddigan represented both sides of the transaction.

The deal underscores continued private-capital appetite for large-scale residential development in Brooklyn’s core, even as builders navigate the trade-offs embedded in New York’s housing tax incentive programs. JLL (JLL), the real estate services firm that advised on the sale, trades at $340.65, up 0.14% from its previous close of $340.18, with a market capitalization of approximately $15.8 billion.

Source: original release

What to watch

• Revisions to the unit count in future Department of Buildings filings, particularly whether the project exceeds 100 units per building and triggers 485-x wage requirements.
• Demolition activity at the existing Fulton Street structure as a signal of construction timelines.
• Further development announcements tied to the former Macy’s retail project across the street.