The city received a total of $8.1 million for the two state-owned properties: $4.6 million for the 99, 644-sf parcel located between Schermerhorn, Hoyt, Smith and State streets; and $3.5 million for the 60,689-sf site located between Schermerhorn, Hoyt, State and Bond streets.
HS Development Partners, a joint venture between Time Equities and Hamlin Ventures, took the larger site. The JV's proposal for the site includes apartment buildings, fee-simple townhouses, student housing, loft-style residences and retail space.
The smaller site went to IBEC Building Corp and Strategic Construction Corp. for a development that adds a charter school to the mix of rental housing, fee-simple townhouses and ground-floor retail.
"The development of these parcels will enhance this community, provide an important link between downtown Brooklyn and residential Boerum Hill, as well as return valuable property to the tax rolls," said Empire State Development Corp. president Charles A. Gargano, who revealed the sale yesterday.
Requests for proposals to purchase and develop the final two of the original three Hoyt-Schermerhorn properties were sent out last summer following a rezoning of the area to ensure that future development reflects the architectural character of the surrounding neighborhoods. Bids on the properties, both located near Downtown Brooklyn, were due in October.
The third parcel, an 18,000-sf site on Smith Street between Atlantic Avenue and State Street, was sold in May 2001 for $3.3 million and is being developed by Shaya B. Developers Inc. as an office, retail and housing complex.
ESDC acquired the three parcels from the City of New York in 1974 as part of the abandoned Schermerhorn-Pacific Urban Renewal Project. Though several proposals have been entertained over the years, the land has been used for parking for decades.
But Gargano floated an RFP on the smallest of the three lots in November 2000 and Shaya B. scooped up the land within six months. With that success under their belts, Gargano and then-Borough President Howard Golden began paving the way for future development of the remaining sites.
In a GlobeSt.com interview last August, ESDC spokesperson said state officials were "very optimistic about the future of these two properties." She also commented on ESDC's commitment to preserving the neighborhood's unique character. "Depending on what block you're on in this area, it is either beautiful 19th-century brownstone streets or commercial areas that intersect them," Gallucci says. "Certainly we want development to reflect and preserve the dignity of the brownstone areas. The development proposed for the first site does just that. The way they have laid out the parcel reflects the different streets that it will be situated on. It's very respectful of the difference between Atlantic Avenue and Smith Street."
Working with the Hoyt-Schermerhorn Community Task Force, Golden and ESDC established design and use guidelines for the land and, in an addendum to the RFP, persuaded the New York City Council to adopt a zoning amendment that creates a Special Downtown Brooklyn District to further control future development of the property.
The resulting district merges the Special Fulton Mall and Special Atlantic Avenue districts. According to papers filed with the city, the new zone will "recognize the special contextual character of the historic brownstone neighborhoods that abut the Downtown (Brooklyn Heights, Boerum Hill, Cobble Hill and Fort Greene) including a reduced 210-foot height" for the area. "These changes would ensure that development is possible at the densities that can be supported by the extensive infrastructure of the business district, and that the adjoining residential neighborhoods are appropriately zoned."
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