Acadia Realty Trust, a real estate investment trust, has entered into an agreement to purchase the leasehold interest in a downtown Brooklyn property for $120 million. Acadia has entered the agreement through its Fund II New York Urban-Infill Redevelopment initiative with P/A Associates (“Acadia P/A”) and Paul Travis of Washington Square Partners (collectively, “Acadia P/A-Travis”).
The agreement is for the property, The Gallery at Fulton Street, and adjacent parking garage.
The fee position in the property is owned by the City of New York and the agreement includes an option to purchase this fee position at a later date.
Acadia P/A-Travis is partnering with MacFarlane Partners (“MacFarlane”), a national minority-owned real estate management firm and is currently in discussion with AvalonBay Communities, one of the largest owners and developers of apartment communities in the country.
Plans for the property include the demolition of the existing improvements and the development of a 1.6 million square foot mixed-use complex to be called “The Center at Albee Square.” The proposed development calls for the construction of a combination of retail, office and residential components, all of which are currently allowed as of right. The new building will be environmentally friendly and qualify for a LEED Silver designation. The residential portion will include both moderate income and market rate rentals under the City’s “80/20 Program”.
The transaction is subject to approval by the Mayor of the City of New York.
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