Joseph Sitt’s Thor Equities acquired the former Tootsie Roll factory at 275 Park Avenue in Clinton Bill for $58.5 million, Crain’s reported. The deal for the 175,000-square-foot Brooklyn property breaks down to more than $334 per square foot.
The final purchase price was a discount from the $67 million that Fairstead and Meadow Partners paid for the property in 2019.
The seven-story building formerly housed the chocolate confectionery, but was converted into an apartment building in the 2000s. The 123-unit property appears to be fully leased, according to StreetEasy.
Besides the rentals, the property also features five commercial spaces, all of which are leased. The storefronts include a spa, a coffee shop, coworking space and a comedy club.
Rosewood Realty Group’s Aaron Jungreis and Ben Khakshoor worked on both sides of the deal.
Prior to Fairstead, the owners of the loft-style property were the HK Organization and Brickman Real Estate. The partners paid $68 million to buy the Clinton Hill building in 2014.
The new acquisition is a “valuable addition to our portfolio that blends Brooklyn’s rich industrial past and modern present,” Sitt said in a statement. “This investment strengthens our presence in high-growth markets and supports our approach of enhancing and diversifying our assets.”
Sitt’s Thor recently lost a couple of properties in Manhattan to foreclosure. Lenders Maverick Real Estate Partners and Midland Loan Services took control of Thor’s retail properties in the Meatpacking District and Soho, respectively.
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Fairstead has been relatively quiet this year, though Jeffrey Goldberg’s firm bought an affordable housing complex in Lauderhill, South Florida at the start of the year for $26.5 million.
In other recent Brooklyn multifamily activity, private equity giant KKR teamed with Dalan Management and agreed to snap up a 327-unit building at 540 Fulton Street in Downtown Brooklyn for roughly $240 million, The Real Deal reported. Jenel Real Estate is the seller in that deal.