Madison, USAA Team Up to Construct $88.5 Million Mixed Use Property in Clinton Hill
- Dec 08, 2014
Almost one month after taking ownership of the Beigel’s Bakery building at the corner of Waverly Avenue and Atlantic Avenue in downtown Brooklyn, real estate investment company Madison Realty Capital announced plans to reconvert the century-old structure into an apartment community with retail space.
Crain’s New York Business reported in November that Madison paid $23.5 million or around $250 per buildable square foot for the 43,350-square-foot facility located at 551 Waverly Avenue in Brooklyn’s Clinton Hill neighborhood. Crain’s noted that the seller was Broadway Equities, a real estate company based in Las Vegas. The transaction included the factory’s 50,000 square feet of development rights, as well as an additional $7.5 million for three adjacent sites and development rights from nearby properties.
“This was a unique opportunity to assemble a large site and develop an institutional quality multifamily development with tremendous growth potential in this popular Brooklyn residential neighborhood,” said in a prepared statement Josh Zegen, co-founder and managing principal of MRC.
Madison teamed up with USAA Real Estate Company to create the 171,000-square-foot multifamily property that was designed by HTO Architects. The eight-story building will have 191 rental apartments in a combination of studios, one- and two-bedroom units. According to an official statement from the developers, the residential project will be an 80/20 rental—which means that 20 percent of the units will be set aside for low-income residents according to a New York City sponsored housing program that offers tax exemptions to developers of multifamily rental projects.
Madison and USAA will invest approximately $88.5 million to complete the project, which will also include around 7,700 square feet of retail space along the building’s frontage on Atlantic Avenue, one of the most popular shopping corridors in Brooklyn. Additionally, the rental project will feature a below grade garage with 96 parking spaces, while more than 27,500 square feet of the building will be used as underground amenity and storage space.
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