Bedford Avenue Mixed-Use Portfolio Acquired by Waterbridge, RedSky for $66M

April 19, 2012 Brooklyn Eagle Staff
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New Owners Will Improve Spaces, Seek Fashion Retailers

Compiled by Linda Collins

Brooklyn Daily Eagle

News for those who live, work and play in Brooklyn and beyond

WILLIAMSBURG — Manhattan-based Eastern Consolidated reports it arranged the equity partnership that recently acquired a mixed-use development site along Williams-burg’s main retail corridor, Bedford Avenue.

Known as The Bedford Portfolio, the 110,000-square-foot multi-parcel site was acquired by Waterbridge Capital and RedSky Capital in a transaction that was valued at $66 million.

Gabe Saffioti and Benjamin Tapper, directors at Eastern, introduced the two firms for the purpose of arranging the joint venture. RedSky will act as the manager of the joint venture, according to Saffioti.

The Bedford Avenue parcels, situated across the street from a planned Whole Foods store, include 237-241 Bedford Ave., 158-160 North Fourth St. and 151-173 North Third St.

Combined, they comprise approximately 50,000 square feet of retail space, 39 residential units and a 5,000-square-foot vacant lot.

“For this transaction to close by a date set by the seller, The Backer Group, we quickly brought Waterbridge together with RedSky to procure the appropriate equity partners to finance and close the deal,” said Saffioti.

“The deal had many moving parts,” he added. “We were pressured to come up with a minimum of $22 million of equity within a matter of days, and fortunately both parties agreed to the terms because they understood the huge potential to maximize the underlying value of these assets in the future.”

New Owners Will Be

Redeveloping, Improving Spaces

“The new owners will be redeveloping and improving the retail spaces,” said Saffioti, who noted that some of the spaces have been vacated already.

“They’re looking to lease retail space to a collection of fashion retailers, necessity retailers and restaurant tenants,” he said. “They have several expressions of interest already.”

Waterbridge President Joel Schreiber said he believes the transaction will result in one of the largest urban-style, mixed-use development sites in Williamsburg.

“Williamsburg is a unique market, one with extremely strong demand and very little availability,” he said. “This site spans nearly the entire block on Bedford Avenue between North Third and North Fourth streets, extending east to Driggs Avenue.”

Said David Kessler, director of acquisitions for Waterbridge, “With 175 feet [of frontage] on Bedford, we have the ability to offer tenants anywhere from 1,000 square feet to 10,000 square feet.

“This parcel is the only one available along Bedford that offers both big-box retailers and local businesses retail space of this scale,” he added.

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