Stark Enterprises has entered the New York City market with a $98 million acquisition of Downtown Brooklyn, a 258,433-square-foot, six-story mixed-use development a few blocks from the Barclays Center sports stadium. Cleveland-based Stark made the purchase through a joint venture with Sun Equity Partners.
The six-story building is fully leased, with Consolidated Edison Co., New York City’s energy utility, occupying the entire 238,000-square-foot office portion. CVS Pharmacy, JP Morgan Chase Bank and United Healthcare Services occupy the retail spaces, which total 20,413 square feet. The property was custom built for Con Edison in 1971, and the utility company has remained in continuous occupancy for 45 years.
“We’ve been planning our entry into the New York market for some time and we knew the time was right when this opportunity presented itself,” said Ezra Stark, chief operating officer, Stark Enterprises. “This move is our first of several planned acquisitions in New York. It’s consistent with our overall strategy of acquiring assets that allow us to unlock hidden value in urban locations that have long-term, opportunistic upsides.”
By Edmund Mander