It’s official: Two Trees has signed a deal to buy the 11-acre site of the former Domino Sugar factory on the Williamsburg Waterfront. Numerous outlets had reported last week the Walentas-owned development company was in talks with C.P.C. Resources to take over the stalled project (whose total dollar value ranges in estimates from $1.4 billion to $2 billion) for $160 million. C.P.C.’s existing partner, the Katan Group, made all sorts of noise at the time about the price being insufficient and went out and claimed to have found a competing bid from the Chetrit Group and David Bistricer (currently in the process of buying and converting the Bossert Hotel to the chagrin of some Brooklyn Heights residents) for $185 million. Two Trees ended up matching that price, but Katan is still griping “We have serious reservations about the propriety of the Two Trees deal.” It’s a fair bet that they’re just trying to squeeze a few more bucks out the deal. (In fact, it’s a bit ironic that Katan is questioning the propriety of anyone, let alone one of the highest-quality developers in the city.) No need to cry for the current owners: They owe about $130 million to lenders on the project so there should be a few shekels to divide up when the dust settles.

As for what the project will end up looking like in Two Trees’ hands, Jed Walentas said that “There are probably some opportunities to make improvements on the plans.” On many people’s minds is whether the 660 units of affordable housing that were originally negotiated by the community will be preserved. “We’re happy that someone can take this over and build it,” Rob Solano, executive director of Churches United for Fair Housing, told The Times. “It’s extremely important that the Domino project is built with all the affordable housing that was promised.” Similarly, Councilwoman Diana Reyna said “We’re looking forward to seeing how the new developer will deliver on the promises made to the community.”

Developer to Revive a Project in Brooklyn [NY Times]
Developer Agrees to Buy Former Domino Sugar Factory Site [NY Post]
Two Trees Inks $160M Deal for Domino [Crain’s]
Photo from AnimalNY


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