February 1, 2006
Brooklyn Market Has Never Been More Attractive
by Frances Schor
President, The Treeline Companies
President, The Treeline Companies
With Manhattan commercial real estate prices soaring to unprecedented levels over the past several years, investors have faced a severeshortage of opportunities to deploy readily available capital in deals that make economic sense in 2005.
This was not the case in Brooklyn, however, where a combination ofzoning changes along the waterfront and major new development commitment in downtown Brooklyn made for a very active year. In total, over3,300 properties changed hands in 2005, totaling over $3 billion in building sales in Kings County.
The Brooklyn market has never been more attractive, and we believethat this past year's activity reflects what The Treeline Companies has known for quite some time--that downtown Brooklyn has a bright future and is a great investment for companies who are committed to thelong-term future of this great borough.
The Treeline Companies, which currently owns a five building, 600,000 square-foot Brooklyn portfolio that includes 180 Livingston Street, 175 Remsen Street and 188, 189 and 205 Montague, will soon commence development of 100,000 square feet of new Class A office space at aformer Macy's warehouse at 29 Gallatin Place in downtown Brooklyn, directly across from their current Livingston Street property.
The building at 29 Gallatin Place represents a portion of the Macy's department store property located at the corner of Livingston Street and Gallatin Place. The redevelopment of this underutilized property won't affect the current size or operation of the existing Macy's store, which will remain a strong retail force in Downtown Brooklyn. The Treeline Companies will take possession of the nine-story, high-ceilinged, ornate brick building at 29 Gallatin Place in April 2006 and begin the redevelopment to separate the properties, and install allnew mechanical, electrical, elevator, heating, wiring and HVAC systems as a part of the $20 million project.
Downtown Brooklyn is undergoing its latest and most profound renaissance, and this opportunity will allow us to save and incorporate existing, historic architecture into the commercial revitalization.
This redevelopment will also be a lightening rod for new retail opportunities and the further enhancement of the area.
The Treeline Companies' long and respectful relationship with Federated Department Stores, and Treeline's knowledge of the neighborhoodand its properties, enabled us to create a deal and development where there had been none.
It's that creativity that makes for the most exciting and rewarding transactions. It is a hallmark of The Treeline Companies, and one best illustrated by this development. In addition to the new office space development, the Treeline Companies is also actively involved with other area projects that will improve business conditions and opportunities throughout Brooklyn's diverse business districts.
One way the Treeline Companies has given back to the borough's business community is supporting the establishment of Business Improvement Districts (BIDs) that deliver supplemental services such as sanitation and maintenance, public safety and visitor services, marketing and promotional programs, capital improvements and beautification in designated areas.
The Treeline Companies was instrumental in the formation of the Montague Street BID several years ago and is currently working with theBrooklyn Chamber of Commerce and other organizations and business toform a Livingston Street BID.
BIDs are funded by a special assessment paid by property owners within the district.
The New York City department of Small Business services (SBS) works with commercial property owners and businesses to assist them in forming BIDs and managing BID services on an ongoing basis.
The Treeline Companies is proud to have been part of this businessand community resurgence in Brooklyn. Since the company was established in 1985, the Treeline Companies has continuously invested in the redevelopment and improvement of the boroughs business districts.
In addition to our extensive Long Island portfolio, our Brooklyn properties have always been the core of our overall investment strategy throughout the New York metropolitan area. Our dedication to and belief in the future of Brooklyn has never been stronger.
This was not the case in Brooklyn, however, where a combination ofzoning changes along the waterfront and major new development commitment in downtown Brooklyn made for a very active year. In total, over3,300 properties changed hands in 2005, totaling over $3 billion in building sales in Kings County.
The Brooklyn market has never been more attractive, and we believethat this past year's activity reflects what The Treeline Companies has known for quite some time--that downtown Brooklyn has a bright future and is a great investment for companies who are committed to thelong-term future of this great borough.
The Treeline Companies, which currently owns a five building, 600,000 square-foot Brooklyn portfolio that includes 180 Livingston Street, 175 Remsen Street and 188, 189 and 205 Montague, will soon commence development of 100,000 square feet of new Class A office space at aformer Macy's warehouse at 29 Gallatin Place in downtown Brooklyn, directly across from their current Livingston Street property.
The building at 29 Gallatin Place represents a portion of the Macy's department store property located at the corner of Livingston Street and Gallatin Place. The redevelopment of this underutilized property won't affect the current size or operation of the existing Macy's store, which will remain a strong retail force in Downtown Brooklyn. The Treeline Companies will take possession of the nine-story, high-ceilinged, ornate brick building at 29 Gallatin Place in April 2006 and begin the redevelopment to separate the properties, and install allnew mechanical, electrical, elevator, heating, wiring and HVAC systems as a part of the $20 million project.
Downtown Brooklyn is undergoing its latest and most profound renaissance, and this opportunity will allow us to save and incorporate existing, historic architecture into the commercial revitalization.
This redevelopment will also be a lightening rod for new retail opportunities and the further enhancement of the area.
The Treeline Companies' long and respectful relationship with Federated Department Stores, and Treeline's knowledge of the neighborhoodand its properties, enabled us to create a deal and development where there had been none.
It's that creativity that makes for the most exciting and rewarding transactions. It is a hallmark of The Treeline Companies, and one best illustrated by this development. In addition to the new office space development, the Treeline Companies is also actively involved with other area projects that will improve business conditions and opportunities throughout Brooklyn's diverse business districts.
One way the Treeline Companies has given back to the borough's business community is supporting the establishment of Business Improvement Districts (BIDs) that deliver supplemental services such as sanitation and maintenance, public safety and visitor services, marketing and promotional programs, capital improvements and beautification in designated areas.
The Treeline Companies was instrumental in the formation of the Montague Street BID several years ago and is currently working with theBrooklyn Chamber of Commerce and other organizations and business toform a Livingston Street BID.
BIDs are funded by a special assessment paid by property owners within the district.
The New York City department of Small Business services (SBS) works with commercial property owners and businesses to assist them in forming BIDs and managing BID services on an ongoing basis.
The Treeline Companies is proud to have been part of this businessand community resurgence in Brooklyn. Since the company was established in 1985, the Treeline Companies has continuously invested in the redevelopment and improvement of the boroughs business districts.
In addition to our extensive Long Island portfolio, our Brooklyn properties have always been the core of our overall investment strategy throughout the New York metropolitan area. Our dedication to and belief in the future of Brooklyn has never been stronger.