Brooklyn Space January 31, 2024
The Sunset Park waterfront.
Photo courtesy of NYCEDC
Photo courtesy of NYCEDC
How Brooklyn’s ‘Innovation Coast’ Became a Self-Fulfilling Prophecy
The nickname was really just a marketing ploy for a stretch of neighborhoods, but it’s drawn dozens of businesses and billions in investment. Seven years ago, a group of developers debuted a marketing campaign aimed at attracting Amazon to Brooklyn, dubbing the stretch of East River waterfront from Williamsburg to Sunset Park the “Innovation Coast.” Over the past few years, the New York City Economic Development Corporation has reconfigured the concept into a less cringe-worthy set of environmentally friendly incubator programs based in Brooklyn.
Then, last week in his State of the City speech, Mayor Eric Adams unveiled a similar “Harbor of the Future” plan that includes $100 million for climate-tech startups at Brooklyn Army Terminal (BAT), a climate research hub on Governors Island, new green energy startup spaces at the Brooklyn Navy Yard, and a planned life sciences campus in Manhattan’s Kips Bay.
“The same harbor that has welcomed immigrants in the past will be a place of even more opportunity going forward,” the mayor said Jan. 24. “We are transforming the waterfronts and shorelines that first made New York the economic engine of this nation into the Harbor of the Future. Over the coming years, the Harbor of the Future will create 53,000 temporary and permanent jobs, generate $95 billion in economic impact, and establish New York City as the global destination for green technology, innovation and opportunity.”
QUICK LINKS
Skip scrolling, find the biggest stories here:
Photo: Lore Croghan/Brooklyn Eagle
Around Kings County
Pratt Institute to Expand Footprint at Brooklyn Navy Yard
Dock 72 needed some good news — and it got it. Developers Boston Properties and Rudin snared Pratt Institute as a new tenant. The 62,570 square-foot lease will bring to the Brooklyn Navy Yard cutting-edge waterfront office building Pratt’s new MFA studios, which will have the entire third floor.
Council Member Crystal Hudson Has the Pro-Housing Movement in a Panic
The Council member this week asked her colleagues on the zoning subcommittee not to approve any private rezoning applications in the area she and the Adams administration plan to rezone. Given the Council’s tradition of member deference, that spells doom for Nadine Oelsner’s application to rezone 962 Pacific Street to allow for 150 apartments (including 38 to 45 affordable units), a child care center and manufacturing space that The Eagle covered last week.
Alloy Development Launches Leasing for 505 State Street in Downtown Brooklyn
Alloy Development has launched leasing for 395 apartments at 505 State Street, a 44-story all-electric tower in the Alloy Block mixed-use development in Downtown Brooklyn. Located at the intersection of State Street and Flatbush Avenue, the overall development includes residential, office, and retail spaces, as well as New York City’s first two public schools built to Passive House standards. 505 State Street has entirely eliminated the use of natural gas, opting for electrical systems for all functions, including kitchens with induction cooktops and heat pump dryers. It is the first of its kind in New York City.
Promising ‘More House Than High Rise,’ Downtown Brooklyn Condo Nine Chapel Launches Sales
Sales officially launched at Downtown Brooklyn’s Nine Chapel Street, a new boutique condo tower taking an innovative approach to outdoor space. Developed by Tankhouse and designed by SO-IL, the 14-story building contains 27 luxury residences and creative outdoor space, including open-air terraces that act like front porches and weather-protected loggias. Pricing for the one- to four-bedroom residences starts at $1,040,000.
New Bushwick Foodtown Supermarket Fulfills Dream for Longtime Brooklyn Owners
Beaming store owners and elected officials recently cut the ribbon for the grand opening of a long-awaited new Foodtown grocery store at 54 Noll Street in Bushwick in a ceremony attended by neighbors who eagerly poured into the attractive new retail space. Owned and operated by Shady Widdi, the 15,000-sq-ft state-of-the-art supermarket is positioned as a “key player” in the neighborhood’s ongoing renaissance, according to Allegiance Retail Services (ARS), a fast-growing grocery co-op of which Foodtown is a member. All Foodtown stores are locally owned and family-operated.
A Year to Forget: Brooklyn Investment Sales Plummet
Multifamily sales dropped 56 percent in 2023. High-interest rates dealt a big blow to Brooklyn investment sales last year after a record-breaking 2022. Investment sales in the borough totaled $5.1 billion in 2023, a 46 percent drop from the previous year’s $9.5 billion, according to a report by Ariel Property Advisors. Transactions were down 30 percent. “The good news is that the market fundamentals are strong. Rents are up, and we have a perpetual shortage of housing, so occupancy is not an issue,” Ariel’s Sean Kelly said.
Housing Solutions From
Across The Globe
Photo courtesy of Bay Ridge Historical Society
Amid a Housing Crunch, Religious Groups Unlock Land to Build Homes
Faith-based organizations are unlocking their real estate to develop affordable housing, but they face challenges from reluctant local residents, wary lenders and strict zoning laws. Across the nation, faith-based organizations are redeveloping unused or derelict facilities to help rectify a housing affordability crisis while also fulfilling their mission to do good in the world. With the exception of a few well-heeled churches or synagogues, most religious organizations tend to be land-rich and cash-poor, said Geoffrey Newman, an executive managing director at Savills, a real estate services company.
Perspectives From Brooklyn
And Beyond
► Email Misfire Adds Drama to the War for a New York Casino License
An errant email has led to collusion accusations and subpoenas, illustrating the cutthroat environment surrounding the battle for a casino license in New York. In the billionaire-versus-billionaire contest to open a casino in the United States’ last great untapped gambling market, an errant email can become a dangerous weapon in an opponent’s hands. That is a lesson that Steve Cohen, the New York Mets owner, and Hard Rock International, his casino partner, have learned the hard way in recent weeks.
The central players in this episode of casino palace intrigue include Mr. Cohen’s team and a rival casino interest: Las Vegas Sands, which wants to build a resort at the Nassau Coliseum site on Long Island, roughly 16 miles east of Mr. Cohen’s proposed casino development at Citi Field. Read more.
► A Moonshot Plan to Fill a Cavernous, Dilapidated Armory in the Bronx
It was supposed to be a mall, then ice rinks. Nearly 30 years later, a community group may have the best shot at revitalizing a fortress in New York’s poorest borough. It has been called the world’s largest armory — a palatial fortress in the middle of the northwest Bronx, with turrets overlooking the subway station. But for nearly 30 years, the Kingsbridge Armory has languished despite grand plans by mega-developers, billionaire investors and celebrities to repurpose the 570,000-square-foot landmark.
Now, an unusual community-led partnership aims to succeed where those efforts failed by creating an economic and cultural hub for those who live and work in the predominantly low-income neighborhood. It hopes to bring high-tech manufacturing jobs, a live performance space, new businesses and affordable housing to the city-owned site. Read more.
► Adams to Grant $100 Million in Tax Breaks for Two Office Building Upgrades
Owners of largely empty buildings in Midtown East and FiDi are first to get new aid advertised as addressing a record glut of Manhattan commercial space. The administration of Mayor Eric Adams is poised to grant $100 million in tax breaks Tuesday to upgrade two financially ailing office buildings, the first projects to surface under its new Manhattan Commercial Revitalization subsidy for real estate developers. Spiffing up the offices at 850 Third Ave., near 51st Street, and 175 Water St. near the South Street Seaport would generate more than 2,113 jobs within three years and retain 365 more, according to resolutions that the board of the New York City Industrial Development Agency. Read more.
► NYC Section 8 Rents Increased by Over 10%: Small Landlords Should Take Notice
In 2024, New York City’s Section 8 Payment Standards for landlords witnessed a significant increase, surging by over 10% compared to the previous year. This change marks a pivotal moment, especially for small landlords grappling with economic uncertainties and inflationary pressures. The increase in Section 8 rents presents a unique opportunity for these landlords to secure stable income streams while contributing positively to the community. Read more.
► Adams Demands Housing Help, Leans on Allies in State of the City Speech
Mayor Eric Adams touted his progress on public safety and the city’s economic recovery while promising modest action on housing in a State of the City speech last week that had the feel of a re-election campaign rally. With the city’s finances under strain despite a rosier-than-expected budget plan that Adams unveiled this month, the mayor’s 2024 policy agenda appeared slimmer than it was last year. At that time, he announced plans to rezone a swath of Midtown, expand composting and boost city contracts to minority- and women-owned businesses. Instead, Adams vowed last week to build affordable housing on city-owned land, create a new agency to regulate bicycle deliveries and declare social media a public health hazard for the harm it does to young people. Adams also repeated his frequent calls for state lawmakers to pass a housing plan that would incentivize more construction and office conversions and for the federal government to speed up work authorization for migrants.
► Property Deals Have Collapsed. Prices Haven’t Yet.
U.S. commercial real estate transactions fell more than 50% in 2023, but bargains remain elusive. Property investors sat on the sidelines last year, waiting for enticing opportunities. But the 2009-style discounts they were hoping for haven’t materialized — at least not for the kinds of buildings they want to own. Just $374 billion of real estate was sold in the U.S. last year, according to MSCI data released, a 51% fall compared with 2022. Read more.
► U.S. Median Rents Fall for Eighth Month on Boom in New Apartments
December rents remain 22% higher than before the pandemic. U.S. median rents dropped for an eighth straight month in December as a surge in new units provided some relief on asking prices and suggested further declines in 2024. Metro areas in the West, such as San Francisco and Los Angeles, continued to experience year-on-year price declines, but the most significant drops were seen across big cities in the South as multifamily completion rates jumped 32% from January to October, according to a report by Realtor.com Thursday. Orlando, Austin and Dallas saw the biggest declines in rent prices. Read more.
Brooklyn Space for Living, Working & Investing is produced by Eagle Urban Media. Contact at [email protected]
Copyright (C) 2023 by Eagle Urban Media. All rights reserved.
Leave a Comment
Related Articles
Good Food March 8, 2024
Brooklyn Space March 6, 2024
Good Food March 1, 2024
Leave a Comment
Brooklyn Boro
View MoreNew York City’s most populous borough, Brooklyn, is home to nearly 2.6 million residents. If Brooklyn were an independent city it would be the fourth largest city in the United States. While Brooklyn has become the epitome of ‘cool and hip’ in recent years, for those that were born here, raised families here and improved communities over the years, Brooklyn has never been ‘uncool’.