The developers behind a new Atlantic Avenue mixed-use tower have inked long-term leases for the building’s first retail tenants, commercial broker JLL has exclusively told Crain’s.
Manhattan-based real estate investment group Hope Street Capital will soon welcome Brooklyn’s largest hospital system, Maimonides Health, to 809 Atlantic Ave., along with fast food chain Chick-fil-A and doggie day care center Hounds Town. The companies will together occupy 36,000 square feet of retail and office space in the new Clinton Hill development that also includes a fully leased and already-occupied residential portion.
All three tenants signed leases for 15 years or longer and are slated to open by the end of this year, some as early as the end of the summer, according to Hope Street Capital partner Sha Dinour.
“This is the first time anyone is occupying the building. It just finished a few years ago,” Dinour told Crain’s. “The rapid lease up of the retail space is reflective of the strong demand for best-in-class concepts among the very fast-growing residential population leading the neighborhood’s transformation.”
Maimonides Health will take over the entire second floor of the building on a 25,000-square-foot lease for a healthcare center offering primary care, surgical and OB/GYN services. The expansion will allow the healthcare system to provide more people with more care across the borough, according to president and CEO Ken Gibbs.
Chick-fil-A, the Georgia-based fast food chain, will occupy 5,000 square feet on the ground floor, and Hounds Town has signed a lease for all 6,000 square feet of the lower level, where it will offer doggie daycare, overnight boarding and pet spa services. There is still 8,000 square feet of retail space available in the project.
The building sits across the street from the site of a contentious rezoning proposal to replace a drive-through McDonald’s with housing. It’s also just a stone’s throw from the start of the Vanderbilt Avenue Open Street that bans cars from spring through fall, allowing pedestrians and cyclists full rein of the roadway.
And less than a mile away is another Brooklyn Chick-fil-A at 166 Flatbush Ave. That franchise is “actually one of the top performing” in the country, according to JLL’s senior vice president for retail Ryan Condren.
Developed by Hope Street Capital and designed by Morris Adjmi Architects, 809 Atlantic Ave. is a 29-story mixed-use tower whose residential portion is known as The Axel. It boasts 284 apartments, a pool and sundeck, a game lounge and a fitness center.
The retail portion on the first two floors spans a full block between Vanderbilt and Clinton avenues with frontage on Atlantic Avenue.
Getting the apartments filled was crucial to landing the successful retail tenants, according to Condren.
“Retail really follows residential,” he said.
Julianne Cuba , 2024-06-20 18:52:20
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