In one of the more creative transactions to close in recent years in Brooklyn, the Dermot Company together with the Canyon-Johnson Urban Fund sold the 31,856-square-foot commercial condominium within One Hanson Place to a buyer who specializes in properties with medical office space. The deal closed in May 2008. The condominium is comprised of 15 units on 7 floors within One Hanson Place, the tallest building in Brooklyn at 512 feet.

The Dermot Company and the Canyon-Johnson Urban Fund had bought the building in May 2005 for $70.75 million or $270 per square foot and then invested in a major renovation and conversion of the former office building to include these offices, 189 luxury residential condominiums and anchor retail in the former banking hall.

The buyer was attracted to the investment for its long-term leases, strong cash flow and stable tenants. The deal, which is the largest office condo in the area, was partially financed by a loan from the Bank of Smithtown. They were the highest bidder for the deal and had the best access to financing.

As per Executive Managing Director, Eric Michael Anton, “The buyers knew this was a good opportunity, and had the credentials both as an owner and operator which appealed to the seller.” Mr. Anton along with Executive Managing Director, Ronald A. Solarz, brokered the deal on behalf of both the buyer and seller.

One of the most recognized icons in Brooklyn, One Hanson Place, formerly known as the Williamsburg Savings Bank Tower, was built in 1929. In 1977, it was declared a historic landmark with its distinctive clock tower and gilded dome that have been fully restored in the renovation. The building features a 40-foot archway at the retail entrance that leads to marble floors, stone walls, arched mosaic ceilings in a grand 63-foot high lobby. Portions of floors 1-6 and the entire 7th floor were carved out for the office condominium to relocate and consolidate existing dental practices formerly in tenancy throughout the building. The office condominium has its own entrance.

“The new investors realized what a prized property this was, especially given the restoration that the buildings’ owner was undertaking,” said Executive Managing Director, Ronald A. Solarz.

Within a few blocks are the Brooklyn Academy of Music, Atlantic Terminal and Atlantic Center Malls, MetroTech Center, and the proposed arena for the future Brooklyn Nets NBA franchise. The Brooklyn Museum, the Brooklyn Botanic Gardens and Ft. Greene Park are also all within walking distance. One Hanson Place is situated at the intersection of three major avenues, directly above the third-largest transit hub in New York City. Given the appeal of both the building’s historic architecture and its location, it is not surprising that many of the residential condominiums in the building sold for more than $800 per square foot.

— Barbara Byrne Denham, Chief Economist, Eastern Consolidated