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Two Trees signs to buy Domino's site for $160M



By Linda Collins

Brooklyn Daily Eagle

 

DUMBO — Two Trees Management Co., the firm known primarily for its development of the DUMBO neighborhood, will likely be the new owner of the Domino Sugar site in Williamsburg — possibly as soon as the next couple of weeks, according to a spokesperson for CPC Resources Inc., the site’s developer.

“The deal is not final yet; we are working out the details now,” the spokesperson told the Brooklyn Eagle yesterday, adding that CPC and Two Trees have signed a “preliminary term sheet.” Two Trees has reportedly agreed to pay $160 million for the 11.2-acre waterfront site.

Stefan Friedman, a representative for Two Trees and its father-and-son principals, David and Jed Walentas, told the Eagle, “We will have no comment at the moment.”

The Domino's sale was first reported in the Sunday Daily News.

CPC President and CEO Rafael Cestero said in a statement:

“The deal with Two Trees is currently in its preliminary stages.

"Our goal is to find a partner who will develop Domino into the mixed-income, mixed-use community it was intended to be and to find a deal that works for CPC and all our various stakeholders.

“Two Trees understands waterfront development, is well-capitalized and is the best chance for meeting our vision for Domino.

“With this sale, CPC will be able to return to its core mission as a lender providing badly needed capital to support affordable housing development and strengthen neighborhoods throughout the city and state.”

During the past six weeks, CPC has received a number of bids. They were all reviewed and the list narrowed down to Two Trees, Cestero said.

The firm made its offer to CPC and its partner, the Katan Group.

According to the Daily News, the Katan Group will attempt to quash the deal.

“We are studying the possible deal, but one thing is obvious: CPC[R] is undervaluing the asset yet again,” Katan said in a statement.

It was previously reported that the Katan Group sued its partner for “project mismanagement and its use of funds from a $125 million loan on the property.”

The partners paid $55 million for the once-iconic factory in 2005; the Katan Group believes it is now worth about $200 million, the Daily News noted.

Calling it a “troubled” property, Crain’s New York Business commented that if the sale of the proposed “New Domino” development goes through, “the $160 million deal would be enough to cover the outstanding mortgage and interest of $125 million on the property.”

June 12, 2012 - 7:22am


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