DDG picks up a 5-story former industrial building on Warren Street that had been foreclosed on by its lender. The developer may replace it with a 15-story condo.
DDG has acquired a distressed Tribeca site for $14.8 million and is planning to build a luxury condominium there.
A five-story building that once housed a printing factory sits on the site at 12-14 Warren St. between Church Street and Broadway. The property was previously owned by a Spanish developer Renta Corp., which had intended to convert the property into a condo. Renta, however, ran into trouble, defaulted on its loan and the property was taken over by the lender, Banco Bilbao, which foreclosed on the mortgage with a balance of $26 million last year, according to public records. DDG bought the property for a 43% discount. The deal closed at the end of June.
“Tribeca has changed tremendously over the last few years, driven partially by the rejuvenation of downtown, and it’s a great family neighborhood,” said Joe McMillan, Chief Executive Officer and Chairman of DDG, a real estate investment and development firm. “We are intimately familiar with the block and we felt comfortable acquiring the property.”
Plans for 12-14 Warren St., which is less than a block from City Hall Park and within walking distance of the Sept. 11 Memorial, have not been finalized. However, DDG is buying air rights from its neighbors in order to build a 50,000- to 60,000-square-foot condo that rises 15 stories.
“We are looking at both converting or razing the building,” Mr. McMillan said, adding that plans for the project will be finalized in six months. “It’s all still in the works, but we are contemplating large units comparable to 41 Bond.”
At that address in Soho, DDG recently sold out its 10-story luxury condo with seven units ranging in size from 3,000 square feet to 6,000 square feet, at prices averaging $2,500 per square foot, according to Mr. McMillan.
“We expect 12-14 Warren to command premium pricing,” he said. “There is demand for large, family-sized apartments in Tribeca, in particular.”
Elsewhere in Manhattan, DDG is developing 345meatpacking, a 37-unit condo located at 345 W. 14th St., between Eighth and Ninth avenues. Mr. McMillan expects to begin marketing the one-to four-bedroom apartments at that project this fall.
Based in New York, DDG has about $400 million in developments underway in the city and in San Francisco. “We are actively looking for new opportunities in New York City and San Francisco,” Mr. McMillan said, adding that the firm has done one deal every five to six months. “We like to continue to accelerate that pace.”