72 The Queens Courier • REAL ESTATE • June 23, 2016 FOR BREAKING NEWS VISIT www.qns.com DEVELOPMENT multi-family DEVELOPMENT DEVELOPMENT DEVELOPMENT BROOKLYN MARKETS BROOKLYN MARKETS TWO BROOKLYN MARKETS THEIR RECOVERY AND FUTURE MARKETS TWO BROOKLYN MARKETS THEIR RECOVERY AND FUTURE RECOVERY AND FUTURE The CPEX Edge: RECOVERY AND FUTURE My real estate journey to CPEX Real Estate BROOKLYN MARKETS RECOVERY The AND FUTURE CPEX Edge: FUTURE Edge: How the CPEX model maximizes the value maximizes the value BY JUSTIN LINIADO Real estate has always been a fire and a passion of mine. After eight years in the industry, sometimes it feels as if it’s in my blood and in my bones. Born and raised in Midwood, Brooklyn, I began my career in real estate as an intern at KSR Realty straight out of high school. After completing my internship, to their specific needs and objectives. How the CPEX model maximizes the value As I transition into my new position at CPEX Real Estate, I look forward to combining my skills and experience with CPEX’s proven track record of success. of your retail property of your retail property property By Andre Sigourney As managing partner Timothy King likes to say, when he and Brian Leary founded CPEX in 2008, New York City didn’t need another commercial real estate rm. Rather, it needed a di erent kind of real estate rm. CPEX’s unique operating platform, the only one of its kind in the commercial real estate marketplace, implements a team-based approach in which each group specializes in one particular property type. As head of the Retail Sales Team, I focus solely on representing property owners in the sale of their retail retailer to take 9,500 of the 15,000 square feet of available ground oor space. is newfound cash By Andre Sigourney As managing partner Timothy King likes to say, when he and Brian Leary founded CPEX in 2008, New York City didn’t need another commercial real estate rm. Rather, it needed a di erent kind of real estate rm. CPEX’s unique operating platform, the only one of its kind in the commercial real estate marketplace, implements a team-based approach in which each group specializes in one particular property type. As head of the Retail Sales Team, I focus solely on representing property owners in the sale of their retail added signi cant value to the property, and ultimately allowed me and our Retail Sales Team to achieve the nal sale price of $4.5 million.In both instances on Court Street and Flatbush Avenue, we I was quickly offered an associate position able to market the property for sale and lease in the Manhattan Residential Division. My brief stint working in residential real estate at KSR and helping jumpstart the firm’s Commercial Retail Division order to give our client a plethora of options to decide the best and highest outcome. With the totality and variety of our expertise, we provide unique value to new mixed-use developments. reaffirmed my passion for real estate, and I Justin Liniado. CPEX helps expand a seller’s options assets. With only one property type to focus on, knew I wanted to remain in that realm. Following KSR, I started a venture running my own business. Andre Sigourney it comes to their existing or in-the-pipeline we have a high level of expertise and experience when it comes to our asset class. e other bene t of the CPEX system of property specialization properties. e market is currently at a pivotal of land and the easing of lending restrictions I spent the next two years hustling to provide furnishing has | ACQUISITIONS made condominium | ADVISORY developments a more is that it allows us to work together to achieve our clients’ packages to relocating clients, then was hired by Safra National possibility. CPEX can provide tremendous value by assets. With only one property type to focus on, retailer to take 9,500 of the 15,000 square feet of available ground oor space. is newfound cash ow added signi cant value to the property, and ultimately allowed me and our Retail Sales Team to achieve the nal sale price of $4.5 million. In both instances on Court Street and Flatbush Avenue, we were able to market the property for sale and lease in order to give our client a plethora of options to decide the best and highest outcome. With the totality and variety of our expertise, we can provide unique value to new mixed-use developments. CPEX helps expand a seller’s options when it comes to their existing or in-the-pipeline retail (and other!) properties. e market is currently at a pivotal point as the price of land and the easing of lending restrictions for homeowners has made condominium developments a more attractive possibility. CPEX can provide tremendous value by assisting with a development’s retail component, which is o en overlooked. As retail specialists in both sales and leasing, we at CPEX will make sure that the owner will receive maximum exposure by providing the highest level of service and delivering optimal results to clients? What better setting to fuel that fire, that Andre Sigourney goals. is fosters collaboration, not competition; instead of competing with one another for listings, we leverage one another’s development’s retail component, which is o en retail specialists in both sales and leasing, we at Bank as Associate of Real Estate to do real estate banking and commercial lending. we have a high level of expertise and experience when it comes to our asset class. e other bene t of the CPEX system of property specialization specialized expertise to get the most accurate evaluations sure that the owner will receive maximum exposure and achieve the maximum sale price for our clients. e CPEX model also encourages teams to work in tandem to obtain maximum exposure. With our array of specialists, CPEX can help a property or business owner in nearly any capacity: sale, lease, acquisitions, seller nancing, installment sale, owneruser A private bank with a client portfolio totaling more than $10 billion, Safra gave me valuable experience underwriting real estate assets and originating and analyzing loan requests for a wide range of clientele. With clients ranging in net worth from $500,000 to $1 billion, I was responsible for more than $500 million in potential business for the bank. Between my endeavors in the start-up sector and time in real estate finance, I have gained significant experience and expertise few of the aspects of our company that sets the typical commercial real estate rm and ACQUISITIONS | ADVISORY is that it allows us to work together to achieve our clients’ LEASING | ACQUISITIONS | ADVISORY goals. is fosters collaboration, not competition; instead of competing with one another for listings, we leverage one another’s unique model for our Retail Teams to give owners comes to the sale or lease of their retail property. nancing, 1031 exchange – the list goes on. specialized expertise to get the most accurate evaluations INVESTMENT SALES | LEASING | ACQUISITIONS | ADVISORY is has been true for several assignments. As an example, on Court Street, where our Retail Leasing Team has been particularly and achieve the maximum sale price for our clients. e CPEX model also encourages teams to work in tandem to obtain maximum exposure. With our array of specialists, CPEX can help a property or business owner in nearly any capacity: sale, lease, acquisitions, seller nancing, installment sale, owneruser 81 WILLOUGHBY STREET | 8TH FLOOR | BROOKLYN | NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM active with 13 signed leases in the past ve years, we were able to market 525 Court Street for sale and lease. In this instance, we were able to present the owner with all the options on the table, ultimately nding a tenant to lock in a steady income stream instead of the one-time boon of a sale. We took the same multi-pronged approach for 2038-2050 Flatbush nancing, 1031 exchange – the list goes on. is has been true for several assignments. As an example, on Court Street, where our Retail Leasing Team has been particularly Avenue. Our Retail Leasing Team found a regional apparel as I take the next step in my real estate career. I have cultivated the entrepreneurial spirit necessary in a business predicated active with 13 signed leases in the past ve years, we were able on to being market self-525 driven Court and Street persistent.for sale I and lease. In this instance, we were able to present the owner with all the options on learned the importance of developing relationships. the table, ultimately I realized that nding you a must tenant simultaneously to lock in a steady income stream instead treat of every the one-client time the boon same of and a sale. We took the same multi-pronged approach for 2038-2050 Flatbush uniquely – equal regardless of the size of their loan or property, yet unique with respect Avenue. Our Retail Leasing Team found a regional apparel DEVELOPMENT Serving real estate and business owners since 2008, CPEX has a long and established history of servicing property and business owners on projects of all sizes throughout New York City. Our one-of-a-kind operating platform, in which each of our teams focuses on one particular property retailer to take 9,500 of the 15,000 square feet of available ground oor space. is newfound cash ow added signi cant value to the property, and ultimately allowed me and our Retail Sales Team to achieve the nal sale price of $4.5 million. In both instances on Court Street and Flatbush Avenue, we were able to market the property for sale and lease in order to give our client a plethora of options to decide the best and highest outcome. With the totality and variety of our expertise, we can provide unique value to new mixed-use developments. type, allows me to channel my energy and expertise into being the preeminent specialist in the Queens multi-family market. What better place to further my real estate career CPEX helps expand a seller’s options passion? At CPEX,when I’ve it found comes my to their colleagues existing are or in in-the-the pipeline habit of referring to the company as “the CPEX Family.” There have been a few stops on my journey in real estate, but finally it feels like I’ve found a family who shares that same blood, that same DNA born and raised to be in real estate. retail (and other!) properties. e market is currently at a pivotal point as the and price value.of land and the easing of lending restrictions for homeowners has made condominium developments a more attractive possibility. CPEX can provide tremendous value by assisting with a development’s retail component, which is o en overlooked. As retail specialists in both sales and leasing, we at CPEX will make sure that the owner will receive maximum exposure ose are just a few of the aspects of our company that sets CPEX apart from the typical commercial real estate rm and provides the unique model for our Retail Teams to give owners an edge when it comes to the sale or lease of their retail property. and value. ose are just a few of the aspects of our company that sets CPEX apart from the typical commercial real estate rm and provides the unique model for our Retail Teams to give owners an edge when it comes to the sale or lease of their retail property. INVESTMENT SALES | LEASING | ACQUISITIONS | ADVISORY 81 WILLOUGHBY STREET | 8TH FLOOR | BROOKLYN | NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM www.brooklynspectator.com • march 2013 • brooklyn spectator 17 Downtown Brooklyn and Williamsburg are two very diff erent marketplaces, catering to diff erent clientele seeking the same thing: a less expensive alternative to Manhattan, without sacrifi cing convenience. This was the conventional thought process and holds true for many residents today. However, more and more residents, retailers, restaurants and other businesses are choosing Brooklyn over Manhattan because of preference, not pricing. Brooklyn has its own place on the map and the recovery and resurgence of Downtown and Williamsburg are, and will continue to be, the driving factors behind the Brooklyn boom. Currently, Williamsburg is the hottest market in New York City! Historically a neighborhood of warehouses and loft buildings, most development sites have large footprints, and the zoning off of the waterfront only permits low density. This off ers developers the ability to keep construction costs down and deliver effi cient buildings with loss factors below 15 percent. While the market lagged, long-term players like L&M, AREA, LCOR, Heatherwood Communities and Silverstone Properties remained confi dent in the neighborhood and struck deals for sites between $100 and $125 per buildable square foot. In the past six to twelve months, land prices have nearly doubled, reaching $200 to $250 per buildable square foot. Williamsburg accounts for seven of the eight largest land sales transactions in Brooklyn in 2012. Two Trees purchased the Domino Sugar Factory site for $185 million, while Chinese developer Xinyuan Development purchased 418 Kent Avenue for $54.2 million. A partnership between Michael Cayre, Alex Adjmi and Bobby Cayre closed on 242 Bedford Avenue, the future site of Whole Foods, and Richard Kalikow’s Manchester Real Estate took back 44 South 8th Street. This surge can be attributed to the lack of inventory, record pricing for condos and rentals, and simply the demand to live in Brooklyn’s version of SoHo. The rental market is over $60 per square foot and condos have surpassed $1,000 per square foot. Most surprisingly, smaller buildings are achieving rents and sale prices similar to full service buildings such as 111 Kent and the Edge. Aside from just being cool, Williamsburg off ers a less expensive alternative to Manhattan, with the added ease of being in Union Square in 15 minutes via the L train. I expect continued growth in the retail market as tenants like American Apparel continue to take space on side streets as a less expensive alternative to Berry Street and Bedford Avenue. With signifi cant growth and even more demand for offi ce space from the tech, fashion and design, architecture and design, and professional service sectors, expect to see a ground up offi ce building be constructed in the near future. Last but not least, look for over 500 hotel rooms to come on line in the next three years. While transactional volume and dollar volume in the Downtown Brooklyn market lagged behind Williamsburg, Brooklyn’s Central Business District has seen six major deals in the last six months alone. In November, The Carlyle Group purchased a 315,000 square foot mixeduse development site located on Smith Street, while The Lam Group acquired 231 Duffi eld Street, a 128-room hotel, for $31 million or $240,000 per key. Originally slated as a boutique, the building is now fl agged as an Indigo by InterContinental Hotels Group. Lodgeworks purchased 125 Flatbush Avenue Extension for $165 per buildable square foot; down the street, The Chetrit Group is building a mixed-use condo and hotel. LaLazerian, builders and owners of Brooklyn Gold, purchased the Oro 2 site on the corner of Gold and Johnson Streets for $19 million. At the end of 2012, my Development & Conversion Sales team at CPEX Real Estate completed a ground lease transaction for a proposed 116,000 square foot hotel located in heart of the BAM Cultural District. Full service rental buildings such as Forrest City’s DKLB, EQR’s Brooklyner, Northend Equities’ The Addison, and Avalon Fort Greene are fully leased with rent costs in the mid-fi fties. The Oro, a delayed condo project, recently closed on it last unit with prices reaching $900 per square foot. In the next two years, Avalon Bay, Stahl Real Estate, The Dermot Company and the Oro 2 will add 1,600 units. Following shortly behind, Steiner Studios’ “The Hub” will add another 720 units. Acadia Realty’s City Point project is a game changer, with the addition of tenants such as Armani Exchange, Century 21 and Alamo Drafthouse Cinema. While retail around the Barclays Center is still struggling, we are still in the infancy stage. Expect vacancies along Flatbush Avenue to fi ll in over the next twelve months. With more than 8,000 condo and rental units already in the pipeline for the next ten years, national retailers will continue to expand along the Fulton Mall and will eventually make their way to Willoughby and Livingston Streets, less expensive alternatives to the Mall. Ten years ago, my colleague, CPEX Managing Partner Brian Leary, called Livingston Street “the Sleeping Giant.” In 2010, we could not fi nd a buyer for the Hub site, which was previously in contract for $75 million. In 2011, the site sold for $30 million and is perhaps one of the best acquisitions during the downturn; in terms of buildable FAR, the property traded for approximately $50 per square foot. The awakening will take time, but over the next fi ve to ten years, the “giant” will arise. In short, Downtown Brooklyn is rapidly becoming a 24/7 housing and retail destination City Planning envisioned with the rezoning. Now that the market has stabilized and development projects have been revived, I expect steady long-term growth in Downtown Brooklyn as it continues to develop as a central business district. Williamsburg will see slower growth in the long term, due strictly to the neighborhood’s limited large scale development opportunities, but the “Burg” will never lose its edgy luster or hipness. BY SEAN R. KELLY, ESQ. YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM www.brooklynspectator.com • march 2013 • brooklyn spectator 17 lagged behind Williamsburg, Brooklyn’s Central Business District has seen major deals in the last six months In November, The Carlyle Group purchased a 315,000 square foot mixeduse development site located on Smith while The Lam Group acquired eld Street, a 128-room hotel, for million or $240,000 per key. Originally slated as a boutique,the building fl agged as an Indigo by InterContinental Hotels Group. Lodgeworks purchased 125 Flatbush Avenue Extension 165 per buildable square foot; down street, The Chetrit Group is building a use condo and hotel. LaLazerian, builders and owners of Brooklyn Gold, purchased the Oro 2 site on the corner and Johnson Streets for $19 million. the end of 2012, my Development Conversion Sales team at CPEX Estate completed a ground lease transaction for a proposed 116,000 foot hotel located in heart of the BAM Cultural District. Full service rental buildings such as Forrest City’s DKLB, EQR’s Brooklyner, Northend Equities’ The Addison, and Avalon Fort Greene are fully leased with rent costs in the mid-fi fties. The Oro, a delayed condo project, recently closed on it last unit with prices reaching $900 per square foot. In the next two years, Avalon Bay, Stahl Real Estate, The Dermot Company and the Oro 2 will add 1,600 units. Following shortly behind, Steiner Studios’ “The Hub” will add another 720 units. Acadia Realty’s City Point project is a game changer, with the addition of tenants such as Armani Exchange, Century 21 and Alamo Drafthouse Cinema. While retail around the Barclays Center is still struggling, we are still in the infancy stage. Expect vacancies along Flatbush Avenue to fi ll in over the next twelve months. With more than 8,000 condo and rental units already in the pipeline for the next ten years, national retailers will continue to expand along the Fulton Mall and will eventually make their way to Willoughby and Livingston Streets, less expensive alternatives to the Mall. Ten years ago, my colleague, CPEX Managing Partner Brian Leary, called Livingston Street “the Sleeping Giant.” In 2010, we could not fi nd a buyer for the Hub site, which was previously in contract for $75 million. In 2011, the site sold for 30 million and is perhaps one of the best acquisitions during the downturn; in terms of buildable FAR, the property traded for approximately $50 per square foot. The awakening will take time, but over the next fi ve to ten years, the “giant” will arise. In short, Downtown Brooklyn is rapidly becoming a 24/7 housing and retail destination City Planning envisioned with the rezoning. Now that the market has stabilized and development projects have been revived, I expect steady long-term growth in Downtown Brooklyn as it continues to develop as a central business district. Williamsburg will see slower growth in the long term, due strictly to the neighborhood’s limited large scale development opportunities, but the “Burg” will never lose its edgy luster or hipness. RETAIL ® A block of multi-family housing in Queens. INVESTMENT SALES | LEASING | ACQUISITIONS | ADVISORY ® Photos courtesy of CPEX Real Estate 81 WILLOUGHBY STREET | 8TH FLOOR | BROOKLYN | NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM www.brooklynspectator.com • march 2013 • brooklyn spectator 17 Downtown Brooklyn and Williamsburg are two very diff erent marketplaces, catering to diff erent clientele seeking the same thing: a less expensive alternative to Manhattan, without sacrifi cing convenience. This was the conventional thought process and holds true for many residents today. However, more and more residents, retailers, restaurants and other businesses are choosing Brooklyn over Manhattan because of preference, not pricing. Brooklyn has its own place on the map and the recovery and resurgence of Downtown and Williamsburg are, and will continue to be, the driving factors behind the Brooklyn boom. Currently, Williamsburg is the hottest market in New York City! Historically a neighborhood of warehouses and loft buildings, most development sites have large footprints, and the zoning off of the waterfront only permits low density. This off ers developers the ability to keep construction costs down and deliver effi cient buildings with loss factors below 15 percent. While the market lagged, long-term players like L&M, AREA, LCOR, Heatherwood Communities and Silverstone Properties remained confi dent in the neighborhood and struck deals for sites between $100 and $125 per buildable square foot. In the past six to twelve months, land prices have nearly doubled, reaching $200 to $250 per buildable square foot. Williamsburg accounts for seven of the eight largest land sales transactions in Brooklyn in 2012. Two Trees purchased the Domino Sugar Factory site for $185 million, while Chinese developer Xinyuan Development purchased 418 Kent Avenue for $54.2 million. A partnership between Michael Cayre, Alex Adjmi and Bobby Cayre closed on 242 Bedford Avenue, the future site of Whole Foods, and Richard Kalikow’s Manchester Real Estate took back 44 South 8th Street. This surge can be attributed to the lack of inventory, record pricing for condos and rentals, and simply the demand to live in Brooklyn’s version of SoHo. The rental market is over $60 per square foot and condos have surpassed $1,000 per square foot. Most surprisingly, smaller buildings are achieving rents and sale prices similar to full service buildings such as 111 Kent and the Edge. Aside from just being cool, Williamsburg off ers a less expensive alternative to Manhattan, with the added ease of being in Union Square in 15 minutes via the L train. I expect continued growth in the retail market as tenants like American Apparel continue to take space on side streets as a less expensive alternative to Berry Street and Bedford Avenue. With signifi cant growth and even more demand for offi ce space from the tech, fashion and design, architecture and design, and professional service sectors, expect to see a ground up offi ce building be constructed in the near future. Last but not least, look for over 500 hotel rooms to come on line in the next three years. While transactional volume and dollar volume in the Downtown Brooklyn market lagged behind Williamsburg, Brooklyn’s Central Business District has seen six major deals in the last six months alone. In November, The Carlyle Group purchased a 315,000 square foot mixeduse development site located on Smith Street, while The Lam Group acquired 231 Duffi eld Street, a 128-room hotel, for $31 million or $240,000 per key. Originally slated as a boutique, the building is now fl agged as an Indigo by InterContinental Hotels Group. Lodgeworks purchased 125 Flatbush Avenue Extension for $165 per buildable square foot; down the street, The Chetrit Group is building a mixed-use condo and hotel. LaLazerian, builders and owners of Brooklyn Gold, purchased the Oro 2 site on the corner of Gold and Johnson Streets for $19 million. At the end of 2012, my Development & Conversion Sales team at CPEX Real Estate completed a ground lease transaction for a proposed 116,000 square foot hotel located in heart of the BAM Cultural District. Full service rental buildings such as Forrest City’s DKLB, EQR’s Brooklyner, Northend Equities’ The Addison, and Avalon Fort Greene are fully leased with rent costs in the mid-fi fties. The Oro, a delayed condo project, recently closed on it last unit with prices reaching $900 per square foot. In the next two years, Avalon Bay, Stahl Real Estate, The Dermot Company and the Oro 2 will add 1,600 units. Following shortly behind, Steiner Studios’ “The Hub” will add another 720 units. Acadia Realty’s City Point project is a game changer, with the addition of tenants such as Armani Exchange, Century 21 and Alamo Drafthouse Cinema. While retail around the Barclays Center is still struggling, we are still in the infancy stage. Expect vacancies along Flatbush Avenue to fi ll in over the next twelve months. With more than 8,000 condo and rental units already in the pipeline for the next ten years, national retailers will continue to expand along the Fulton Mall and will eventually make their way to Willoughby and Livingston Streets, less expensive alternatives to the Mall. Ten years ago, my colleague, CPEX Managing Partner Brian Leary, called Livingston Street “the Sleeping Giant.” In 2010, we could not fi nd a buyer for the Hub site, which was previously in contract for $75 million. In 2011, the site sold for $30 million and is perhaps one of the best acquisitions during the downturn; in terms of buildable FAR, the property traded for approximately $50 per square foot. The awakening will take time, but over the next fi ve to ten years, the “giant” will arise. In short, Downtown Brooklyn is rapidly becoming a 24/7 housing and retail destination City Planning envisioned with the rezoning. Now that the market has stabilized and development projects have been revived, I expect steady long-term growth in Downtown Brooklyn as it continues to develop as a central business district. Williamsburg will see slower growth in the long term, due strictly to the neighborhood’s limited large scale development opportunities, but the “Burg” will never lose its edgy luster or hipness. BY SEAN R. KELLY, ESQ. NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM www.brooklynspectator.com • march 2013 • brooklyn spectator 17 lagged behind Williamsburg, Brooklyn’s Central Business District has seen six major deals in the last six months alone. In November, The Carlyle Group purchased a 315,000 square foot mixeduse development site located on Smith Street, while The Lam Group acquired 231 Duffi eld Street, a 128-room hotel, for 31 million or $240,000 per key. Originally slated as a boutique, the building is now fl agged as an Indigo by InterContinental Hotels Group. Lodgeworks purchased 125 Flatbush Avenue Extension for $165 per buildable square foot;down the street, The Chetrit Group is building a mixed-use condo and hotel. LaLazerian, builders and owners of Brooklyn Gold, purchased the Oro 2 site on the corner of Gold and Johnson Streets for $19 million. At the end of 2012, my Development & Conversion Sales team at CPEX Real Estate completed a ground lease transaction for a proposed 116,000 square foot hotel located in heart of the BAM Cultural District. Full service rental buildings such as Forrest City’s DKLB, EQR’s Brooklyner, Northend Equities’ The Addison, and Avalon Fort Greene are fully leased with rent costs in the mid-fi fties. The Oro, a delayed condo project, recently closed on it last unit with prices reaching $900 per square foot. In the next two years, Avalon Bay, Stahl Real Estate, The Dermot Company and the Oro 2 will add 1,600 units. Following shortly behind, Steiner Studios’“The Hub” will add another 720 units. Acadia Realty’s City Point project is a game changer, with the addition of tenants such as Armani Exchange, Century 21 and Alamo Drafthouse Cinema. While retail around the Barclays Center is still struggling, we are still in the infancy stage. Expect vacancies along Flatbush Avenue to fi ll in over the next twelve months. With more than 8,000 condo and rental units already in the pipeline for the next ten years, national retailers will continue to expand along the Fulton Mall and will eventually make their way to Willoughby and Livingston Streets, less expensive alternatives to the Mall. Ten years ago, my colleague, CPEX Managing Partner Brian Leary, called Livingston Street “the Sleeping Giant.” In 2010,we could not fi nd a buyer for the Hub site, which was previously in contract for $75 million. In 2011, the site sold for $30 million and is perhaps one of the best acquisitions during the downturn; in terms of buildable FAR, the property traded for approximately $50 per square foot. The awakening will take time, but over the next fi ve to ten years, the “giant” will arise. In short, Downtown Brooklyn is rapidly becoming a 24/7 housing and retail destination City Planning envisioned with the rezoning. Now that the market has stabilized and development projects have been revived, I expect steady long-term growth in Downtown Brooklyn as it continues to develop as a central business district. Williamsburg will see slower growth in the long term, due strictly to the neighborhood’s limited large scale development opportunities, but the “Burg” will never lose its edgy luster or hipness. RETAIL INVESTMENT SALES | LEASING | ACQUISITIONS | ADVISORY 81 WILLOUGHBY STREET | 8TH FLOOR | BROOKLYN | NEW YORK | 11201 | 718.935.1800 | WWW. CPEXRE.COM www.brooklynspectator.com • march 2013 • brooklyn spectator 17 lagged behind Williamsburg, Brooklyn’s Central Business District has seen six major deals in the last six months alone. In November, The Carlyle Group purchased a 315,000 square foot mixeduse development site located on Smith Street, while The Lam Group acquired 231 Duffi eld Street, a 128-room hotel, for $31 million or $240,000 per key. Originally slated as a boutique, the building is now fl agged as an Indigo by InterContinental Hotels Group. Lodgeworks purchased 125 Flatbush Avenue Extension for $165 per buildable square foot; down the street, The Chetrit Group is building a mixed-use condo and hotel. LaLazerian, builders and owners of Brooklyn Gold, purchased the Oro 2 site on the corner of Gold and Johnson Streets for $19 million. At the end of 2012, my Development & Conversion Sales team at CPEX Real Estate completed a ground lease transaction for a proposed 116,000 square foot hotel located in heart of the BAM Cultural District. Full service rental buildings such as Forrest City’s DKLB, EQR’s Brooklyner, Northend Equities’ The Addison, and Avalon Fort Greene are fully leased with rent costs in the mid-fi fties. The Oro, a delayed condo project, recently closed on it last unit with prices reaching $900 per square foot. In the next two years, Avalon Bay, Stahl Real Estate, The Dermot Company and the Oro 2 will add 1,600 units. Following shortly behind, Steiner Studios’ “The Hub” will add another 720 units. Acadia Realty’s City Point project is a game changer, with the addition of tenants such as Armani Exchange, Century 21 and Alamo Drafthouse Cinema. While retail around the Barclays Center is still struggling, we are still in the infancy stage. Expect vacancies along Flatbush Avenue to fi ll in over the next twelve months. With more than 8,000 condo and rental units already in the pipeline for the next ten years, national retailers will continue to expand along the Fulton Mall and will eventually make their way to Willoughby and Livingston Streets, less expensive alternatives to the Mall. Ten years ago, my colleague, CPEX Managing Partner Brian Leary, called Livingston Street “the Sleeping Giant.” In 2010, we could not fi nd a buyer for the Hub site, which was previously in contract for $75 million. In 2011, the site sold for $30 million and is perhaps one of the best acquisitions during the downturn; in terms of buildable FAR, the property traded for approximately $50 per square foot. The awakening will take time, but over the next fi ve to ten years, the “giant” will arise. In short,Downtown Brooklyn is rapidly becoming a 24/7 housing and retail destination City Planning envisioned with the rezoning. Now that the market has stabilized and development projects have been revived, I expect steady long-term growth in Downtown Brooklyn as it continues to develop as a central business district. Williamsburg will see slower growth in the long term, due strictly to the neighborhood’s limited large scale development opportunities, but the “Burg” will never lose its edgy luster or hipness. CPEXRE.COM w.broklynspectator.com • march 2013 • broklyn spectator 17 District. rental buildings such as DKLB, EQR’s Brooklyner, Equities’ The Addison, and Greene are fully leased with mid-fi fties. The Oro, a project, recently closed prices reaching $900 In the next two years, Real Estate, The Dermot and the Oro 2 will add Following shortly behind, The Hub” will add another City Point project is a with the addition of tenants Armani Exchange, Century Drafthouse Cinema. While Barclays Center is still are still in the infancy vacancies along Flatbush over the next twelve than 8,000 condo and already in the pipeline for national retailers will expand along the Fulton eventually make their way and Livingston Streets, alternatives to the Mall. colleague, CPEX Managing Brian Leary, called Livingston Sleeping Giant.” In 2010, a buyer for the Hub previously in contract 2011, the site sold for is perhaps one of the during the downturn; buildable FAR, the property approximately $50 per square awakening will take time, but to ten years, the “giant” Downtown Brooklyn is rapidly housing and retail destination Planning envisioned with market has stabilized and projects have been revived, long-term growth in Downtown it continues to develop business district. Williamsburg slower growth in the long to the neighborhood’s development opportunities, Burg” will never lose its hipness. RETAIL ACQUISITIONS | ADVISORY 718.935.1800 | WWW. CPEXRE.COM
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