NYCEDC Selects Time Equities and Brooklyn Economic Development Corporation to Redevelop Federal Building #2 in Sunset Park
Former Navy Warehouse to Become Modern Light Industrial, Mixed-Use Center. New York City Economic Development Corporation (NYCEDC) has selected a joint venture consisting of Time Equities Incorporated (TEI) and Brooklyn Economic Development Corporation (BEDC) to redevelop the building known as Federal Building #2 into one of the City’s first mixed-use light manufacturing and retail complexes. The 1.1-million-square-foot building occupies a 314,000-square- foot parcel of land bounded by Second and Third Avenues and 30th and 32nd Streets in the Sunset Park section of Brooklyn. The proposal calls for renovating the existing eight-story warehouse building for use by light manufacturers on the upper floors and retail and showroom space on the lower floors. The developers also plan to construct a new retail center with accessory parking on the adjacent 100,000-square-foot parking lot. The total cost of the project is estimated to be $205 million. It will create approximately 1,285 full time jobs and almost 2,000 construction jobs, and generate about $44 million in real estate and other taxes over 25 years. “This is another giant step toward realizing Mayor Bloomberg’s commitment to creating an environment that encourages important industrial businesses to remain and grow in New York City,” said NYCEDC President Robert C. Lieber. “This project, coupled with our efforts to revitalize the Bush Terminal Complex and South Brooklyn Marine Terminal, will significantly increase the Southwest Brooklyn Industrial Business Zone’s portfolio of state-of-the-art, affordable industrial space and make Sunset Park a haven for light manufacturing for years to come.” Congressman Jerrold L. Nadler and Congresswoman Nydia M. Velazquez worked with Brooklyn Borough President Marty Markowitz to acquire the building from the Federal Government. City Council Member Sara M. Gonzalez took an active part in the project to ensure responsible development for the community. “The redevelopment of Federal Building #2 is a huge step forward for the retention and development of good manufacturing jobs for the people of Sunset Park and the City as a whole,” said Congresswoman Velazquez. “This project will spur economic growth, create well over 1,000 permanent, living-wage jobs, and contribute to a more diverse, sustainable economy, while promoting a more energy efficient Brooklyn. I look forward to our continued partnership in building a sustainable future.” “I’m pleased that this innovative project is moving forward and that a developer has been chosen to bring this site to life,” said Congressman Nadler. “This visionary plan will transform Sunset Park’s waterfront in many positive ways, bringing over 1,000 full-time jobs, 2,000 construction jobs and a long-term home for dozens of small businesses. The availability of affordable manufacturing space will be a tremendous boon for small business owners who are presently in danger of being priced out of the City. I am pleased that my colleague Congresswoman Velazquez and I have been successful in negotiating the acquisition of the building from the federal government.” The new manufacturing center will contain both rental and condominium units. In addition, significant economic incentives are available to businesses that relocate to the site, which is in a state Empire Zone. As an amenity to the project’s businesses and employees, the developers have agreed to make 10,000 square feet of space available rent-free to an affordable daycare center. Other amenities include a full service fitness center, Wi-Fi Internet access and various food service options. “I commend Congress Members Velazquez and Nadler, who I was pleased to be able to help secure this great asset for Sunset Park and Brooklyn, as well as the great work on the project by Council Member Gonzalez,” said Borough President Markowitz. “I also commend EDC for its commitment to visionary planning in its selection of Time Equities and our own Brooklyn Economic Development Corporation to head this redevelopment project, which will increase Brooklyn’s affordable industrial inventory and create thousands of jobs for Brooklynites – all with an eye toward the greener Brooklyn of the future.” Councilwoman Gonzalez said, “We look forward to the creation of much needed jobs and the productive use of this property. This community has a need for the retail space being created and keeping consumer dollars in our own neighborhood.” The project will target companies requiring less than 10,000 square feet of space. The project plans include a number of sustainable design elements such as a green roof, solar power and high performance windows. An existing power plant building on the adjacent lot will be renovated for use as a co-generation facility. The developers will design and implement local hiring and Minority and Woman-owned Enterprise plans. “Our local manufacturing and industrial sector supports nearly 500,000 jobs, accounting for almost 15 percent of the City’s workforce,” said Carl Hum, Director of the Mayor’s Office of Industrial and Manufacturing Businesses. “Federal Building #2 will provide much-needed space for New York City’s manufacturing businesses to grow and succeed. The proposed multi-tenanted production building, with shared common areas and on-site co-generation facilities, will serve as a model for modern manufacturing in dense urban areas.” Federal Building #2 was built as a warehouse for the Department of the Navy in 1916 and is currently owned by the Federal Government and administered by the General Services Administration. NYCEDC will take title to the property prior to disposition to the developers. Time Equities was selected to partner with BEDC on the project as a result of a Request for Proposals issued jointly by NYCEDC and BEDC. Community Board 7 Chair Randolph Peers said, “We are pleased the City is moving forward with this important project. Its impact will benefit not only Sunset Park and surrounding communities, but because of its scale, it will also benefit New York City’s economy as a whole.” Designated as the Southwest Brooklyn Industrial Business Zone, Sunset Park’s industrial waterfront is an enclave of light manufacturers and other industrial businesses. Across from Federal Building #2 is the South Brooklyn Marine Terminal, which will be reactivated as a maritime port and will include a maritime automobile receiving and processing facility and the Hugo Neu metal and plastics recycling facilities, as well as various general cargo handling operations. Time Equities Chair and CEO Francis Greenberger said, “The redevelopment of Federal Building #2 and its adjacent site will have tremendous benefits not only for Sunset Park, but for all of New York City. I am extremely excited to be working with the City’s EDC and BEDC on this project.” “We are grateful for the opportunity to be involved in a development that will contribute to the revitalization of the Brooklyn waterfront, bring jobs to the area, and provide retail and community amenities to the residents of Southwest Brooklyn,” said Phillip Gesue, Time Equities Director of Acquisitions and Development. Time Equities Incorporated, a full-service real estate company, based in Greenwich Village, has been in business for over 35 years. It has a portfolio of more than 20 million square feet of commercial, industrial and residential properties in 23 states. TEI’s current projects include the Hoyt-Schermerhorn mixed-use development and the State Street Houses in Downtown Brooklyn. The company’s CEO has a long history of successfully redeveloping blighted property in New York City. “We look forward to working with Times Equities to bring back to life a vacant site to create a vibrant center that will provide critical space for small manufacturers as well as jobs and retail services for the Sunset Park community,” said BEDC President Joan Bartolomeo. The Brooklyn Economic Development Corporation is a 28-year-old not-for-profit organization that creates and expands economic opportunity throughout Brooklyn by implementing business and neighborhood development programs. About NYCEDC New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. EDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities.