NEW YORK CITY-Underscoring the meaning of “modernization,” a 1-million-square-foot warehouse at the Brooklyn Navy Yard that was once an ammunition depot is about to become “a modern and sustainable hub for manufacturing and technology innovation,” it was announced Wednesday. Within the 16-story edifice—known as Building 77—240,000 square feet will be leased to Jack Basch, a Brooklyn-based entrepreneur.
Basch is the owner and CEO of Shiel Medical Laboratories, which will occupy one floor, or approximately 60,000 square feet, at the building. Basch will sub-lease the rest of the space to other high-tech industrial and medical-service companies. The privately-financed renovation, to the tune of $80 million, will create 1,500 new jobs at the Navy Yard over the next five years.
“From weapons depot to manufacturing and hi-tech hub, Building 77's ever-changing mission mirrors that of the evolving Brooklyn Navy Yard,” says Basch in the announcement of the restoration. “Building 77's transformation not only preserves a historic piece of the Navy Yard's legacy, but creates hundreds of new jobs and adds even more tech to Brooklyn's burgeoning Tech Triangle,” he says.
"The renovation of Building 77 at the Brooklyn Navy Yard further cements the Yard's position as a critical part of our economic future, while highlighting the importance of the creative economy to this area of Brooklyn," says City Council Speaker Christine Quinn. “The Navy Yard and surrounding Brooklyn Tech Triangle are positioned for strong economic growth and the addition of up to 1, 500 new innovative tech and manufacturing jobs will help more New Yorkers plug into this growing sector.”
Adds Alan Fishman, chairman of the Board of Directors of the Brooklyn Navy Yard Development Corp., “A redevelopment of this magnitude being funded 100% with private sector money is proof positive that the innovation economy in Brooklyn is thriving,” he says. “Investments such as these will ensure that the technology industry will have ample room for growth.”
BNYDC will spend approximately $60 million in base building work financed through a loan using the federal EB-5 program as well as leveraging Federal and New York State historic rehabilitation tax credits and Federal new markets tax credits. Jack Basch and his sub-tenants will invest approximately $20 million for their build-out and new equipment. Future tenants will invest even more in the complex.
In addition, Shiel will receive up to $2.8 million in Excelsior tax credits from Empire State Development, should its workforce grow from 450 permanent jobs to 750 over the next five years. In keeping with BNYDC's commitment to sustainability, Building 77 will be built to LEED Silver standards. Construction is set to begin in the Spring 2013 and will be completed in 18 months.
The remaining 750,000 square feet of the building will be renovated by BNYDC and geared to attract tech and manufacturing companies that want to be in the Brooklyn Tech Triangle.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
