Land Acquisition Paves Way for High-Rise Rental

Construction of the building is expected to begin in 2009. In addition to equity provided by GIM, Citi Community Capital has provided a loan for the site acquisition. A spokesperson for the Dermot Co. could not give information regarding the price paid for the site, although they did confirm reports that the development with have partial affordable housing. The spokesperson also notes that that the development will be in excess of 300 apartments. Sources from Grosvenor Investment Management tell GlobeSt.com that the development team is too early in the planning process to know the construction costs, occupancy and delivery date, and will not release the cost of the loan.

The land parcel is part of a triangle bounded by Flatbush Avenue, Fulton Street, and Rockwell Place near the Brooklyn Academy of Music. It is part of the BAM Cultural District, a project to convert City-owned parking lots and underutilized properties into new mixed-income housing and space for arts organizations. The BAM Cultural District also will feature restaurants, cafés, shops, parking, and distinctive public open spaces.

"This acquisition continues our commitment to invest and develop in downtown Brooklyn and the BAM Cultural District," notes Drew Spitler, VP of development for the Dermot Co. "We believe that this area of Brooklyn, with its rich culture, excellent shopping and dining, and proximity to all transportation modes, makes the neighborhood as appealing and desirable as any in Manhattan."

"29 Flatbush represents an excellent opportunity to acquire a site for high-density, residential development in an evolving urban neighborhood," said Kathleen Hands, managing director of Grosvenor Investment Management. "We are pleased to partner with the Dermot Co., which has extensive hands-on experience in the area."

The Dermot Company is currently developing another downtown Brooklyn property, converting the iconic Williamsburg Savings Bank Building into a luxury condominium residence called One Hanson Pl. The One Hanson Pl. property consists of 189 units and has been converted to provide a downtown location adjacent to major arts, academic, and business destinations for luxury condominium residents. In Queens, the company is transforming the Queens Family Courthouse in Jamaica into 350 multifamily units, retail and parking. Dermot won the bid in 2004 with its development plan for a 12-story mixed-use complex designed by FXFowle Architects, a locally based firm involved in projects such as the Conde Nast Building in Times Square. First occupancy is slated for June 2009.