By Brooklyn Reader

February 18, 2015, 6:00 am

 

Photo: Google Images

Photo: Google Images

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.


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2 Responses

  1. Schellie Hagan

    Let Dan’s Supermarkets lead NYC, which as we speak is planning to sell 15 Lafayette Avenue, the huge empty lot next to Mark Morris, catty corner from BAM, to the Jonathan Rose Companies for $1.00.

    15 Lafayette is easily worth $50,000,000 and developers would fight one another to get it on the open market. But electeds don’t believe in the open market; they believe in giving away public property to builders in deals that go down in secret.

    The shibboleth of “affordable housing” is the rationale for giving away our property. The City maintains it’s contributing to the Mayors’ arbitrary goals of so-and-so much affordable housing by eliminating the biggest single cost to the developer: the land.

    15 Lafayette is our land, soon it will be Jonathan Rose’s, member in good standing of the Real Estate Board of New York. REBNY spent upwards of $10,000,000 in 2013 to buy its way onto the City Council and was well rewarded for its modest investment, which netted some 16 seats, including that of the 35th Council District right there in the heart of the BAM Cultural District.

    Though no one is surprised that

    Reply
  2. Schellie Hagan

    Laurie Cumbo, REBNY’s pick for the 35th, has no problem with the freebie to Jonathan Rose. What has come as a surprise is that Letitia James, the bane of Bruce Ratner, signed on to the deal with Jonathan Rose when she held the 35th District Council seat. Maybe as long ago as 2007.

    15 Lafayette is shocking if it were a one-off, but it’s not. It’s just one of hundreds (thousands?) of public properties being bestowed on big developers in return for minority quotas of affordable units in luxury high rises. (Nevermind $3,000/month “affordable units,” like those in the “100% affordable” Atlantic/Pacific Yards apartment building now abuilding. Bruce Ratner was hailed by the Mayor and CM Cumbo and other electeds for coming through with an apartment building in which every single unit is affordable. $3,000 a month and up.

    Ratner got 22 acres and decades of tax breaks to perform this service to the shelter challenged.

    The story about Dan’s deal with Slate to build offers the real-life template of John Liu’s campaign issue of not selling our pricey public land — nevermind giving it away. Liu warned that once we’ve offloaded property, we’ll neverget it back, will have priced ourselves out of the real restate market. So then the City has to rent from REBNY!

    How is it that a supermarket chain is so much smarter than City Hall? Dan’s knows as much affordable housing can be built on leased land as on land that’s given away. And the owner makes money, too. Win-Win!

    Reply

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