Brooklyn's Progress
August/September 2007

BY JILL SHEEHY

Greenpoint Manufacturing and Design Center, a non-profit real estate development corporation dedicated to rehabilitating Brooklyn buildings for occupancy by small manufacturing enterprises, has closed on their latest acquisition at 221 McKibbin Street in East Williamsburg.

The $11 million deal also means the launch of the BKLYN DESIGNS™ Center at GMDC McKibbin Street, meaning emerging Brooklyn designers and manufacturers have access to below-market industrial space secured by long-term leases, two tenets of the GMDC’s philosophy. The move is an effort to keep Brooklyn’s home-grown talent and quality craftsmen here to stay.

“We’re optimistic that we’ll sign leases with quite a few BKLYN DESIGNS™ participants,” said Brian T. Coleman, CEO of GMDC. “A fair number are interested in the property.”

Mr. Coleman said the new facility will offer leasing rates of $12 to $16 per square foot and the minimum lease will be for five years, with an option for an additional five years.

“McKibbin is our fifth project, we have over 100 tenants, 1,000 employees of those businesses, and right now, we’re the place that small manufacturers want to be,” said Coleman.

When the McKibbin Street project was first announced last year, the GMDC received $3.5 million from the City’s Greenpoint-Williamsburg Industrial Retention Fund and an additional $500,000 from the Brooklyn Borough President Marty Markowitz’s office to facilitate the sale.

The retention fund was created to aid local businesses displaced by the Greeenpoint and Williamsburg rezoning, and came to fruition after negotiations between the Bloomberg administration and Councilmembers David Yassky and Diana Reyna, who represent the area.
Carl Hum, director of the Mayor's Office of Industrial and Manufacturing Businesses, said at the time, "Facilities like 221 McKibbin Street will help keep manufacturing jobs in Williamsburg and contribute to New York City's economic diversity. The Bloomberg Administration is proud to be a partner in its development."

A Need For Space
The collaboration is a long time coming, according to Mr. Coleman.

“We were talking to Kenneth Adams (former Brooklyn Chamber of Commerce president) about how the BKLYN DESIGNS™ participants were faring, and while they were all very happy to participate, the next question was, ‘How’s everything else?’ – Their answer was, ‘well, the real estate’s not so good.’ A lot of people were being pushed out and losing their leases due to gentrification taking place in formerly industrial areas.”

“Manufacturing jobs pay a better salary and have better benefits than the service sector,” he added.

Under Adams’ lead, the Chamber looked to acquire a space for their exhibitors and called in the GMDC to act as a real estate consultant. Luckily, in the middle of the process the McKibbin Street project came up, so they decided to combine the two efforts and “create a home under one roof,” said Mr. Coleman.

What’s Happening
Now that they sale of the building is closed on, renovations are afoot and they are anticipating occupancy for January 2008.

“We’re marketing to BKLYN DESIGN-ers,” said Mr. Coleman. One exhibitor has already signed a lease with GMDC’s property on Manhattan Avenue with plans to move into McKibbin Street when it’s ready.

“People like to be in our buildings,” said Mr. Coleman. “We’re a benevolent landlord and that forces a spirit of cooperation with tenants. And, we help them out by putting them in touch with LDC’s, the Chamber, things like EVIDCO. We’re an attractive doorstep to end up on.”

Always looking ahead, the GMDC is now on the lookout for more spaces throughout the borough.

To date, GMDC has completed five projects, comprising more than 600,000 square feet of space at an investment of approximately $21,000,000. Tenants include woodworkers, makers of home furnishings, food manufacturers, garment companies, metalworkers, and a variety of artisan trades, artists and designers.