A potential blockbuster deal would sell the highly desired 12-acre Domino Sugar Factory site to DUMBO’s Two Trees Management Co., the Daily News has learned.
The tentative price tag of more than $160 million would give the company control of perhaps the best piece of East River property left in the city — and some of the choicest real estate in the world.
If the deal goes through, it would immediately become the top project in Brooklyn’s burgeoning Williamsburg neighborhood.
Two Trees made its offer to the site’s current owners, a troubled partnership between Community Preservation Company (CPC) and Katan Group.
Katan, in a statement, announced it would attempt to block the Two Trees deal and accused CPC of cutting an agreement behind their backs.
“We were very surprised to learn of this purported deal,” the Katan statement said. “It’s disappointing that our supposed partner has hidden this negotiation from us.
We are studying the possible deal, but one thing is obvious: CPC is undervaluing the asset yet again.”
Katan is already suing CPC for project mismanagement and its use of funds from a $125 million loan taken out on the property.
The partners paid $55 million for the once-iconic factory in 2005, and Katan believes it is now worth about $200 million.
At one time, Domino Sugar Factory was the largest sugar refinery in the world.
On a recent tour of the pre-Civil War site, The News saw abandoned dump trucks, eroding steel cranes and cracked concrete walkways where the river floods into buildings.
But the upside is spectacular: Views of the Manhattan skyline and the three bridges to the south are some of the most unique in the city.
And local real estate forces say a purchase by Two Trees would be a strong boost to the neighborhood.
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One Response
This is perhaps the most attractive site for new condos anywhere in Brooklyn. The views are outstanding. They will be able to build a large number of upscale units for young professionals who are looking for top of the line amenities (granite countertops, top-end appliances, balconies and big apartments with 2 or even 3 bedrooms which provide space for an office). Even the smaller units will probably sell for $500,000-$700,000 with most well over a million dollars.