Witkoff has come on board as a development partner on a Downtown Brooklyn development project, joining RedSky Capital and JZ Capital, Commercial Observer reported.
A source with knowledge of the deal told The Real Deal that Witkoff has acquired a minority stake in the project, with pricing around $300 per square foot.
The 36,290-square-foot assemblage, at 547-557 and 559-589 Fulton Street, was marketed for sale after the project’s $154.6 million loan went into default in March.
“It’s very early days,” a source told the publication. “Options are now being explored as to what makes the most sense.”
The marketing effort, led by Cushman & Wakefield, reportedly generated several competitive offers, but the development team decided it wasn’t the right time to move forward with a sale. Witkoff was then brought on to advance the project and “refine” ideas for it, according to CO.
Steve Witkoff has not commented publicly on the deal.
In addition to putting financial pressure on the project, the pandemic may also influence what is built at the site. The original vision was for mixed-use development with both multifamily units and retail space, but the use for that ground-level space may now be reconsidered.[CO] — Sylvia Varnham O’Regan
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