Kushner, LIVWRK Partner to Buy Gowanus Site

NEW YORK CITY—Kushner Companies and LIVWRK are in contract to buy a block-long development site in Gowanus for $70 million to $80 million, according to the Real Deal.

The site, located at 175-225 Third St., allows for a commercial mixed-use project of up to 300,000 square feet but could eventually be rezoned for a residential mixed-use project of more than a million square feet, a source familiar with the off-market deal tells the Real Deal.

The three-acre development site offers about 600 feet of frontage and will allow for about 150,000 square feet of retail, the source reveals. The property is located across the street from the recently opened Whole Foods Market and is close to the Lightstone Group's 700-unit rental development at 363 Bond St.. The seller, listed in property records as 175 Third Street Associates, is a family that owned the property for more than 60 years, the source reports.

Neither LIVWRK CEO Asher Abehsera nor representatives for Kushner Cos. returned requests for comment by press time. Says area retail broker Peter Ripka, of Ripco Real Estate, “In the shopping center world, having Whole Foods as an anchor is like going to the ball with one of the belles.”

The joint venture is not the first time the firms have worked together. Last summer, the partnership teamed up with RFR Realty and Invesco Real Estate to purchase the Watchtower Bible and Tract Society of New York Inc. portfolio—spanning 1.25 million square feet—for $375 million in Brooklyn's biggest deal. The transaction will give rise to Dumbo Heights, an office campus geared towards Brooklyn's emerging technology, advertising and media sector.

Just last month, the Watchtower buildings inked a lease with Etsy for 200,000 square feet. The online marketplace for handmade and vintage goods will be the anchor tenant in the six-building complex.