A London-based Developer Marketing “Co-Living” Is Coming to … Brooklyn

NEW YORK CITY–The Collective is a multifamily developer working to differentiate itself as focused on creating communities in its apartments with its spaces, amenities and programming. The London-based company is creating a $450 million, 350,000 square-foot, purpose-built residential complex in a neighborhood that borders Williamsburg and Bushwick in Brooklyn. The Collective acquired the property in early October from Blesso Properties and Park-It Management for $54.25 million and intends to establish its flagship US location at the site.

The project, located at 555 Broadway with the alternate address of 277 Lorimer, is expected to open in 2020. The site includes 250,982 square feet of market-rate residential development rights and a total development capacity of approximately 328,594 square feet. It also has 725 feet of combined frontage on Broadway, Lorimer Street and Boerum Street.

JLL’s Brendan Maddigan and Ethan Stanton and Avison Young’s James Nelson represented the seller in the transaction.

“This is a complex site and we presented several potential sales scenarios to the seller,” says Maddigan. “We ultimately were able to maximize the sales proceeds for our client by separating a strategic amount of development rights from an existing bank building.”

“The five-lot assemblage unlocked more than 328,000 of potential zoning floor area, making this the largest site to close in North Brooklyn since the Rheingold Brewery site sold in 2016,” says Stanton.

It’s not just office space using real estate in the war for talent. Higher-end, residential space is also in a fierce competition for desirable, rent-paying tenants. Referring to its product as “co-living,” the developer distinguishes itself from other amenity-laden and program-filled apartments by emphasizing it specializes in services and programming. Similar to the co-working office provider WeWork, The Collective has “members,” instead of tenants.

A spokesperson for The Collective tells GlobeSt.com, “Our members tend to be single occupants and our product is an intergenerational model. It is for people who are looking or social connection and to be part of a community.”

The company also emphasizes flexible accommodations, affordable housing, communal facilities and amenities tailored to fit with the neighborhood. Similar to experiential retail, co-living is geared toward increasing interaction and experiences.

“Co-living is fast becoming the preferred housing solution for people who want to live in a more convenient and connected way,” says Reza Merchant, the 29-year-old CEO of The Collective. He adds that his company intends to further expand in New York City.

The development in Brooklyn will have a market hall with local artisanal food, beverages and retail, rooftop amenities, barbecues, lounges, co-working areas, and a fitness center with wellness and exercise classes. The complex will include an art gallery, performance and rehearsal spaces, chef’s kitchens, and event spaces for classes, workshops, talks and seminars. It will also have a street-level, landscaped outdoor area, public seating and communal art, as well as a community facility available for use by local residents and organizations.