Forest City Ratner is hoping to get as much as $185 million for a Brooklyn development site which has sat idle for the last 25 years. The price comes to roughly $300 per square foot of buildable space.
The firm may also be willing to take in a partner rather than sell out completely. But Ratner is reportedly desperate to dump the property as it recently defaulted on its mortgage on which the developer still owes $40 million.
Located between Hudson Avenue and Rockwell Place, 625 Fulton Street holds up to 600, 000 square feet of potential residential living space that can be developed by whoever buys it.
Ratner recently tore down an old commercial building there in order to make the location more attractive to potential investors as a residential development.
CBRE Group is marketing the site.
In other Forest City Ratner news, earlier this month the firm completed a buyout of equity partner interest in Brooklyn apartment project.
The buyout of the Arizona State Retirement System’s equity interest to date, for which Forest City paid $40.5 million, removes B2 BKLYN from the $400 million residential development fund between ASRS and Forest City. The company also assumed ASRS share of the debt on B2.
“We felt it was prudent to make this incremental investment now, rather than cloud the future of the fund as a result of litigation related to a single property, ” said David J. LaRue, Forest City president and chief executive officer.
“In addition, because this investment makes Forest City the 100 percent equity owner of B2, we will have greater flexibility as we drive to restart work at the building site and the modular factory, and to get the hundreds of affected men and women back to work.”