An investment group led by Blackstone Mortgage Trust has provided a $300 million package to recapitalize Liberty View Industrial Plaza, a 1.3 million-square-foot industrial and mixed-use property in Brooklyn owned by Salmar Properties.
The funding’s initial phase reportedly comprises $216 million from Blackstone, Madison Capital, Meadow Partners and Acadia Realty Trust.
Future commitments from the former three parties total $84 million and will be used for tenant improvements, leasing commissions and other purposes, according to Commercial Property Executive.
Located at 850 Third Ave., between 30th and 32nd streets, just off the Gowanus Expressway in Sunset Park, the property’s managment will be assumed by Madison Capital.
The waterfront building adjacent to Industry City was redeveloped for industrial and office use through a $130 million development program by Salmar Properties, with new features including a 3.2 acre Brooklyn Grange rooftop farm, a 386-spot parking lot, a 60,000 s/f ground floor loading zone, 17 loading docks and three additional full drive-in docks.
The program also included 18 brand-new elevators, three office lobbies, on-site dining, reinforced floor loads, new energy-efficient windows, new electrical and HVAC systems, a backup generator and fiber optic infrastructure.
The building offers one of the largest floorplates in New York City at 175,000 s/f.
“This is a premier industrial and office property, rich in history as a U.S. Naval storage facility, and with superior modern infrastructure to any other loft building in Brooklyn,” said Bryan Lisser of Madison Capital.
“We look forward to continuing to work with Meadow Partners and Salmar Properties on delivering innovative office and industrial space to this dynamic market.”
Madison Capital’s plans include an active repositioning and marketing effort to re-introduce the property.
For the first time there will be up to 350,000 s/f of multi-tenant office space with units as small as 10,000 s/f available at the building, and approximately 500,000 s/f of industrial space for tenants of varying size.
The firm is initially pre-building 175,000 s/f of affordable industrial space and will work with the community and local elected officials to attract and support Brooklyn’s small businesses.
The building provides tangible benefits to companies seeking space at a competitive price-point.
Economic incentives include a PILOT (Payment in Lieu of Taxes) program to significantly reduce tax exposure, credits from the NYC Relocation and Employment Assistance Program (REAP), the Industrial & Commercial Abatement Program (ICAP), and the Industrial Business Zone (IBZ), and energy management programs – all of which reduce occupancy costs and empower business growth.