Madison Realty Capital has formed a joint venture with Siguler Guff to acquire a 41,400 square foot retail condominium property within the One Hanson Place building in Fort Greene, Brooklyn, for $20.4 million. The property is at the base of the 41-story, 512-foot high One Hanson Place, built in 1927. Following renovations completed in 2008, the top 33 floors were converted to residential condominiums with the lower floors set for commercial development. Madison will lead the effort to modernize the vacant bottom section for retail.
Madison Realty Capital (MRC), an institutionally backed real estate investment firm focused on real estate equity and debt investments in the middle markets, announced they have acquired a 41,400 sf retail condominium property within the landmarked One Hanson Place building in the Fort Greene neighborhood of Brooklyn for $20.4 million. MRC completed the transaction in a joint venture partnership with private equity investment firm Siguler Guff.
Joshua Zegen, Co-Founder and Managing Member of MRC, made the announcement.
The property sits at the base of the iconic 41-story, 512-foot tall One Hanson Place, built in 1927 and the one-time headquarters for Williamsburg Savings Bank. It’s also one of the most recognized buildings on the downtown Brooklyn skyline.
Following a renovation program which was completed in 2008, the top 33 floors were converted to residential condominiums ranging with the lower floors designated towards commercial use. The retail property contains roughly 17,000 sf of ground floor retail space with an expansive 63-foot vaulted mosaic ceiling. It also includes 16,000 sf of both usable and storage cellar space with ceiling heights of up to 17 feet, and 8,400 sf of mezzanine space, including two private office suites. The property also features 40 foot sculptured windows throughout the ground floor and mezzanine level, providing ample natural light.
MRC will be leading the effort to reposition and modernize the currently vacant property into a premium retail asset through a dedicated capex program and then lease the space to either a single tenant or several long-term tenants.
“One Hanson Place is a Brooklyn architectural treasure and we are pleased to be involved in the next chapter of such an iconic property,” said Zegen. “MRC is also excited to expand its footprint within the heart of Downtown Brooklyn, given the strength of existing fundamentals and further growth potential. We believe that retail demand in the area will continue to strengthen, given the current and historic performance of neighboring retailors. Atlantic Center Mall, which is adjacent to the property, is home to some of the highest grossing retailors in the country, with tenancy estimated to generate sales between $500 psf to above $1,000 psf. There are also over 3,300 residential units currently under construction with another 9,000 units and an estimated 850,000 sf of new retail space in the development pipeline in Downtown Brooklyn.”
One Hanson Place offers an ideal location, situated within the heart of Fort Greene at the intersection of Flatbush Avenue, Ashland Avenue, and 4th Avenue. The property sits above Atlantic Terminal, one of the three largest transportation hubs in New York City, and is located one block north of the Barclays Center. It’s also adjacent to the BAM South development, a mixed-use project expected to be completed by 2016.
About Madison Realty Capital (MRC)
MRC is a New York-based real estate investment firm that pursues real estate equity and debt investments in the middle market. Founded in 2004, MRC has invested in approximately $3 billion of transactions in the multifamily, retail, office, industrial and hotel sectors.