Brooklyn's Latest Project: 200 Riverside

[thelakelander]

Gotta get the filed permits approved first. The fact that permits have been filed is a good thing though.  It means construction is near. With that said, you can always have hiccups (Ex. East San Marco).

[RatTownRyan]

So for a project like this, how long does it take for the permits to get approved? Is nine months within the normal range? Or have the permits been approved and the developers are waiting for some reason?

[KenFSU]

Purely speculation, but Hallmark Partners announced 200 Riverside/Vista Brooklyn shortly after completion of their similar mixed-use project, 220 Riverside, next door.

The woes of the 18,000 SF of retail at 220 Riverside have been well documented, with Sbraga closing quickly, the other restaurants struggling, and Hallmark having to turn over the entire retail section of the development to the bank under threat of foreclosure. Hallmark eventually sold their share of the apartments as well.

As recently as December, Hallmark has said that they're still committed to breaking ground on Vista Brooklyn in 2018, but I wouldn't be surprised if they have cold feet, particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic:

[FlaBoy]

Purely speculation, but Hallmark Partners announced 200 Riverside/Vista Brooklyn shortly after completion of their similar mixed-use project, 220 Riverside, next door.

The woes of the 18,000 SF of retail at 220 Riverside have been well documented, with Sbraga closing quickly, the other restaurants struggling, and Hallmark having to turn over the entire retail section of the development to the bank under threat of foreclosure. Hallmark eventually sold their share of the apartments as well.

As recently as December, Hallmark has said that they're still committed to breaking ground on Vista Brooklyn in 2018, but I wouldn't be surprised if they have cold feet, particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic:

Maybe if the design of the retail wasn't way off the street and not viewable from Riverside, they would be doing almost as well as the retail next door.

[JaxAvondale]

The issue with 220 is that the retail doesn't address the street. Also, you had people managing the retail that didn't understand how to manage retail or draw customers. Finally, the retail that was there was way too ambitious for the lack of infill in the area. Blaze Pizza would probably do much better in the area than the current pizza place.

[thelakelander]

As recently as December, Hallmark has said that they're still committed to breaking ground on Vista Brooklyn in 2018, but I wouldn't be surprised if they have cold feet, particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic:

Probably less to do with 220 Riverside retail and more to do with Vista Brooklyn construction costs and securing financing. I'm sure whatever it is (if there is a problem) will materialize to the public before the year is over.

[JaxAvondale]

As recently as December, Hallmark has said that they're still committed to breaking ground on Vista Brooklyn in 2018, but I wouldn't be surprised if they have cold feet, particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic:

Probably less to do with 220 Riverside retail and more to do with Vista Brooklyn construction costs and securing financing. I'm sure whatever it is (if there is a problem) will materialize to the public before the year is over.

I don't doubt the main issue with Vista comes down to financing.

[vicupstate]

Apartment financing was relatively easy to get a few years back.  I think it has tightened considerably in the last couple of years.

[fieldafm]

Apartment financing was relatively easy to get a few years back.  I think it has tightened considerably in the last couple of years.

This is true. Lenders have clamped down on cap rates and are requiring more equity (among other things).  Multifamily will look much different in a few years from now.

[fieldafm]

Purely speculation, but Hallmark Partners announced 200 Riverside/Vista Brooklyn shortly after completion of their similar mixed-use project, 220 Riverside, next door.

The woes of the 18,000 SF of retail at 220 Riverside have been well documented, with Sbraga closing quickly, the other restaurants struggling, and Hallmark having to turn over the entire retail section of the development to the bank under threat of foreclosure. Hallmark eventually sold their share of the apartments as well.

As recently as December, Hallmark has said that they're still committed to breaking ground on Vista Brooklyn in 2018, but I wouldn't be surprised if they have cold feet, particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic:

Yes, that is pure speculation.

Hallmark eventually sold their share of the apartments as well.

This is how many multifamily transactions work.  Oftentimes there is an equity partner, who winds up buying the building once lease up is done and the asset is performing. Mid-American Apartments is a fairly large REIT (it's currently an S&P 500 company) that does these transactions all over the southeast and will do the same with Halmark for 200 Riverside/Vista Brooklyn. 

particularly since Vista Brooklyn features another 13,000 square feet of retail in an area that already struggles with foot traffic

That is not the case in this situation. There hasn't been a 'delay' in breaking ground, and the retail portion wouldn't really impact the underwriting of a deal like this.  Additionally, retail is not struggling in Brooklyn overall.  The Regency Centers retail center next door is doing quite well, so well in fact that the Ferber Companies is gearing up for another retail center next door and has some credit tenants (national chains) already lined up.

The residential portion of 220 Riverside is performing very well.

The woes of the 18,000 SF of retail at 220 Riverside have been well documented, with Sbraga closing quickly, the other restaurants struggling, and Hallmark having to turn over the entire retail section of the development to the bank under threat of foreclosure. Hallmark eventually sold their share of the apartments as well.

Unity Plaza was designed to be a highly programmed space, and whose programming would support the retail facing the plaza. Was the design flawed? Yes.  Was the execution flawed? Yes.  Was the mix of retail flawed? Yes. In fact, the retail space closest to Riverside Ave could have been leased to a very successful local restaurant management group, but the developer opted for Brixx instead. 

That all said, I wouldn't really say that retail is struggling in Brooklyn because a) Sbraga closed. Kevin Sbraga didn't really even own the restaurant, the developer did. And all of his restaurants (with similar ownership structures) closed... not because his food wasn't good, but because his inflexible concepts and (lack of) management weren't in line with reality. and b) Hobnob is now only open as an event space. The writing was also on the wall with Hobnob (owned by someone with little restaurant experience), when their partner with actual (extensive) restaurant experience pulled out before they opened their doors. 

Forcing a square peg into round holes isn't a microcosm for retail in Brooklyn... nor is it the reason why 200 Riverside isn't built yet. 

[Steve]

The woes of the 18,000 SF of retail at 220 Riverside have been well documented, with Sbraga closing quickly, the other restaurants struggling, and Hallmark having to turn over the entire retail section of the development to the bank under threat of foreclosure. Hallmark eventually sold their share of the apartments as well.

I think this was already addressed by other folks, but I absolutely contend that the 220 Riverside retail setup was terrible and the tenant mix wasn't ideal (they didn't land proven restaurant entities, likely because they didn't want to be buried in a bad setup, and that has led to its struggles.

If the rendering above is ACTUALLY what is built, I don't think they'll have an issue attracting someone legit for a corner location restaurant/retail. They will then do well. I actually think Vista Brooklyn is sort of key for the area. If it is built and does well, I think you'll see some momentum on the other side of Riverside Ave (my speculation)

[Tacachale]

To get back to the original question, is there an update on 200 Riverside? Still coming, delayed, or dead?

[fieldafm]

To get back to the original question, is there an update on 200 Riverside? Still coming, delayed, or dead?

There is no delay. It is still on schedule based on the newest iteration (taller building, etc). Going taller and adding more leasable space is indicative of needing to make the economics work as the multifamily environment has changed.

The bigger question is when is the City going to seriously help improve infrastructure so the rest of the neighbourhood could see residential growth Northwest of Park Street? Besides roads, sidewalks, lighting, etc all being in an unacceptable state of disrepair, most of the neighbourhood doesn't even basic things like sewer hook-ups.  We aren't talking about rural land off Lem Turner... this is an urban neighbourhood that is celebrating its 150th birthday this year.

[MusicMan]

"The bigger question is when is the City going to seriously help improve infrastructure so the rest of the neighbourhood could see residential growth Northwest of Park Street? Besides roads, sidewalks, lighting, etc all being in an unacceptable state of disrepair, most of the neighborhood doesn't even basic things like sewer hook-ups.  We aren't talking about rural land off Lem Turner... this is an urban neighborhood that is celebrating its 150th birthday this year."


Great question.  So important and the COJ way behind on this.

I have tried to make the same point about The Shipyards and enviro mediation. Has not really started and so whenever a project gets serious over there we will be waiting on clean up.

[thelakelander]

Hmmm one of the old local legacies of systematic racism theough public infrastructure investment. The neighborhood still lacks the basic infrastructure most of us take for granted, despite being across the tracks from downtown.