Namdar, Klosed Snag Dumbo Retail Condos For $53M

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Igal Namdar has teamed up with another Great Neck developer on a Dumbo retail play.

Namdar Realty Group and Klosed Properties have purchased the two retail condominiums at the base of the luxury residential building at 85 Jay Street for $52.5 million from CIM Group, The Real Deal has learned.

The condos span 128,000 square feet across three levels of the full-block, two-towered condo-and-rental complex known as Front & York. The space is anchored by Life Time Fitness, which occupies 78,000 square feet under a long-term, 20-plus-year lease.

Other tenants include CVS, daycare Petit Poussins and Nightingale Cardiology. The retail portion is 84 percent leased, according to marketing materials.

Namdar and Klosed could not be immediately reached for comment. A spokesperson for CIM Group did not immediately respond to a request for comment.

A Newmark team led by Dan O’Brien and Adam Spies brokered the deal. Blue Owl Capital provided a $41 million loan for the purchase. The financing was arranged by Newmark’s Max Ralby and Jordan Roeschlab. The brokers declined to comment.

CIM Group and LIVWRK developed the 1.1 million-square-foot building that includes 320 apartments and 408 condominiums, capping off construction in 2021. RXR purchased the rental portion the next year for $220 million. Sixteen condos are currently listed for sale on the building’s website, ranging from $1.2 million to $4.6 million.

Brooklyn retail, especially in Dumbo and Williamsburg, has been having a moment. The borough logged $188 million in sales of retail properties across 42 transactions in the first half of the year, according to commercial brokerage TerraCRG. That’s an 8 percent year-over-year increase in dollar volume.

“Retail as a whole is doing very well,” TerraCRG CEO Dan Marks said during a conference call earlier this month. “Our retail leasing team’s never been busier, so I’m continuing to see strength on that side of the market.”