Saturday, October 22, 2011

$300 Million Northside Piers Tower Will Break Ground By March

Edge developer Douglaston Development has taken the lead on building 3 Northside Piers in Williamsburg. While the third tower at the Edge itself remains on hold, Douglaston plans to break ground on the $300 million, 40-story rental tower in March.

Unlike the first two Northside Piers towers, which were built by Toll Brothers, the third will be built by Edge developer Douglaston Development in partnership with L&M Development Partners. The 500-unit rental building will have fittingly Edge-like amenities: pool, lounge, screening room, weight-training room and business center.

The tower was originally supposed to be part of a three-building complex developed by Toll Brothers, L&M Development Partners and RD Management, but after sales were slow -- even after price cuts -- in the first two Northside Piers buildings, Toll Brothers backed out of the project. L&M and RD will help on Douglaston's version of the tower.

"The Williamsburg market is strong, but for most of us developers, it's not a place where we were making a lot of money," said David Von Spreckelsen, a senior vice president at Toll Brothers. "There's so much product, competing for price against each other."

Douglaston still has a third tower of its own to build at the Edge complex. The developer never broke ground on the third building after sales started sluggishly in the 565 units that comprise the first two structures. However, sales have picked up in recent months, and The Edge is now about 70 percent sold.

By Peter Coyne