Two Trees Buys Two Commercial Sites In Gowanus

GOWANUS – Real estate development and investment firm, Two Trees, has purchased two adjacent commercial sites in Gowanus for more than $100 million, Crain’s New York reports.

The first site formerly housed a Pathmark supermarket at 1-37 12th Street. Two Trees purchased the 70,000-square-foot building along with the 100,000-square-foot parking  lot for approximately $65 million, according to Crain’s. Hamilton Plaza Associates, a joint venture between Meral Property Group and Joyland Group, purchased the property in 2016 for $35 million, The Real Deal reports.

Two Trees also purchased a neighboring nine-acre property located at 118 Second Avenue, currently home to Lowe’s Home Improvement and the store’s parking lot, from Forest City Ratner. Lowe’s 20-year lease at the location expires in 2023.

In 2003, Forest City Ratner agreed to a 99-year ground lease for the site with the U.S. Postal Service who owns the land and collects rent on the ground lease, Crain’s explains.

Both properties are located in Gowanus’ Industrial Business Zone (IBZ), which limits the sites to industrial or commercial use and makes it difficult to convert to them into residential properties. Two Trees could develop additional warehouse space on the sites or use them for retail or creative offices, Crain’s says.

Two Trees has been working on several high-profile development projects across the borough including 300 Ashland in Fort Greene as well as various projects in DUMBO and Williamsburg.

Forest City Ratner recently sold all but five-percent of its stake in the massive Pacific Park development to Greenland USA as well as its retail portfolio of a dozen properties including the Atlantic Terminal Mall and Atlantic Center across from the Barclays Center.