An ambitious proposal to transform Red Hook warehouses into a mixed-use complex with offices, shops, and a promenade is off the table. The Italian firm behind the project, Est4te Four, will soon sell the complex to Sitex, an industrial investment firm based in Englewood, New Jersey, according to the Commercial Observer.
The assemblage includes four buildings at 219 Sullivan Street, 68 and 100 Ferris Street, and 242 Coffey Street, for a total of 1.2 million square feet. Sitex is expected to pay $110 million to Est4te Four early next week.
Est4te Four paid $66 million for the properties back in 2014. The firm found success developing luxury condo 160 Imlay Street in the neighborhood, and envisioned this new project as the “Red Hook Innovation District,” designed to attract tech companies. The plan was to spend $400 million redeveloping the decaying warehouses over the next five years.
That never happened, due to a lack of investment. According to Commercial Observer, “Investors shied away from the neighborhood’s untested office market and a flood-prone location where the closest subway station was a mile and a half away.” In 2015, Est4te Four marketed the complex, seeking a partner who would pump in $100 million, then pulled the listing last year.
Sitex won’t follow through on Est4te Four’s ambitious redevelopment. Instead, the firm will keep the buildings industrial and rent out space. As Brian Milgram, principal at Sitex, told the Commercial Observer, “We intend to reposition what’s there and modernize the buildings and rent them out.”