NEW YORK CITY-Creating yet more interest in theWilliamsburg section of Brooklyn, Madison Marquette has acquired the 64,000-square-foot retail condominium at the Edge, a mixed-use development that is slated to include 550,000 residential condominium units.
The purchase price was $45.5 million and the seller was Douglaston Development, which created the project. HFF's Andrew Scandalios, senior managing director, Jeff Julien, managing director and Rob Rizzi, managing director represented Douglaston in the deal. The seller also had internal representation from Jonathan Fair, EVP.
“We see the greatest relative value these days in the outer boroughs and Williamsburg, in particular, is a submarket that's taking off,” investment director Ryan Colbert tells GlobeSt.com EXCLUSIVELY.
“Madison Marquette has been a long-term investor in urban retail and Williamsburg is a great example of an urban retail area that's being gentrified.” The Edge is close to several other major projects under development, including the Domino Sugar Factory site and Atlantic Yards. The building also plays host to a stop on the East River ferry, on which service was recently expanded.
The firm also wanted to be a part of the project, he adds. “We found the seller to be a top notch developer with a great product, and the location is unmatched.”
Located on the Williamsburg waterfront, the retail condo is about 82% occupied, Colbert says. Major retail tenants include Brooklyn Harvest Market, CVS Pharmacy, Ride Brooklyn and Fabbrica Café. The property has three vacancies, according to Colbert, and Madison Marquette plans to fill one of those spots with a “world-class restaurateur,” yet to be determined.
The property was acquired on behalf of a programmatic joint venture targeting infill retail and mixed-use properties in major markets throughout the United States, according to Madison Marquette's announcement.
“As the residential population continues to grow in Brooklyn, it is only natural that demand for high-quality, urban retail real estate will follow,” adds Arvind Bajaj, managing director and head of Madison Marquette's New York office.
The Edge is the second recent metropolitan New York acquisition for Madison Marquette. “We believe that there is still good relative value in New York City – especially in Brooklyn and Queens as these boroughs are urban, dense submarkets, Bajaj says.
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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.
