December 7th, 2011
Brooklyn Eagle reports that Massey Knakal has been retained to sell a “warehouse/manufacturing/conversion/development site with additional air rights” at 51 Jay Street in Dumbo. The building is also known as 201 Water Street or “Jay Street Arts Building” per the sign on the building.
The Brooklyn Eagle writes:
Calling it a potential conversion or development site, Palmese, who has the listing, said the owner is asking $200 per square foot for the second and third floors and $150 per square foot for the development rights.
The existing through-block, three-story building, which is on the east side of Jay Street and has frontage on both Water and Plymouth streets, falls within the DUMBO Historic District and will have to go before the Landmarks Preservation Commission for approval of any changes, according to Palmese.
It contains approximately 80,000 square feet, with a partial basement and an annex building and sits on a lot that is approximately 200 feet by 155 feet.
The air rights total approximately 75,000 square feet.
With 80,000 square feet plus 75,000 square feet of air rights, the building can potentially be developed as a mixed-use development site and will be delivered vacant. The building size is 200′ x 155′, or 31,000 square feet per floor. If the owner is asking $200 per square feet for the 2nd and 3rd floors ($12.4MM), and $150 for the air rights ($11.25MM), that would bring the asking in the range of $23.65MM for the 2nd, 3rd, and air rights plus costs for 18,000 square feet on the ground level. Does this sound right?
The third floor is an open floor with a glass roof structure. The space can be made into a grand space for a business or residential. Spaces like this are becoming more scarce in Dumbo, so it seems like a good development opportunity for the right real estate developer.