Edge developer Douglaston Development has taken the lead on building a nearby site at 3 Northside Piers in Williamsburg and plans to break ground on a $300 million project in March, the Wall Street Journal reported. Douglaston, led by CEO Jeffrey Levine, intends to build a 40-story rental tower where rents range from $55 to $60 per square-foot.
The tower was originally supposed to be part of a three-building complex developed by Toll Brothers, L&M Development Partners and RD Management, but after sales were slow — even after price cuts — in the first two Northside Piers buildings, Toll Brothers backed out of the project. L&M and RD will help on Douglaston’s version of the tower.
“The Williamsburg market is strong, but for most of us developers, it’s Not A Place where we were making a lot of money,” said David Von Spreckelsen, a senior vice president at Toll Brothers. “There’s so much product, competing for price against each other.”
Douglaston still has a third tower of its own to build at the Edge complex. The developer never broke ground on the third building after sales started sluggishly in the 565 units that comprise the first two structures. However, sales have picked up in recent months, and, as The Real Deal previously reported, about 30 units have closed per month in 2011. The Edge is now about 70 percent sold. [WSJ]