Dan’s Supreme Supermarkets, the landowners for the Key Food (formerly Pioneer), located at 325 Lafayette Avenue in Clinton Hill, has struck a special deal.
According to Crain’s New York, the owners of the property will be working with developers Slate Property Group to erect an eight-story, 110-unit, ground-up rental development on the site of the grocery store.
But what makes the deal so special is its shared-risk nature for both parties, as the storeowners will maintain their land ownership and grocery space while the developers get to avoid the skyrocketing cost of Clinton Hill’s land prices– the single biggest obstacle for developers right now in that area of the borough.
“Firms like us are getting priced out of the market, so we are getting creative in our deal structures,” said David Schwartz, principal at the development company.
The planned construction of the building will include about 20 affordable apartments, with 3,500 square feet of amenity space and 15,000 square feet of ground-floor retail.
“We are looking almost exclusively at this type of deal,” Schwartz said. “We are not looking to buy a lot of land on the open market.”
The firm is already in talks with a handful of other longtime Brooklyn property owners.