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Successful Sale of 220 Water Street in Vinegar Hill, Brooklyn
Bob Knakal successfully closed the sale of 220 Water Street, a former industrial building in the Vinegar Hill section of Brooklyn, for $23,500,000. The property, located in one of the borough’s most architecturally rich and quietly upscale neighborhoods, was sold for conversion into residential use.
The transaction was brokered by Bob Knakal of BKREA, who represented the seller, Martin Prince, a high-net-worth individual. The property’s prime location and its potential for transformation into 135 residential units made it especially appealing to developers.
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Sale Details
The sale of 220 Water Street closed on April 29, 2005, for $23,500,000, or $127.03 per buildable square foot.
- Buyer: Hawthorne Village LLC
- Seller: Martin Prince
- Asset Class: Conversion – Industrial to Residential
- Date Closed: April 29, 2005
Highlights:
- Rare residential conversion opportunity in Vinegar Hill
- Sold with 185,000 buildable square feet
- 135-unit residential redevelopment plan
- Prime location between DUMBO and the Brooklyn Navy Yard
Property Details
220 Water Street is ideally situated in Vinegar Hill, on the edge of DUMBO, just steps from the Brooklyn waterfront and minutes to Manhattan via the Manhattan and Brooklyn Bridges. The property sits within a highly desirable submarket that blends historic charm with proximity to major tech and creative industry hubs.
- Address: 220 Water Street, Brooklyn, NY
- Block/Lot: 95 / 7,501
- Lot Size: Substantial lot suitable for redevelopment
- Stories: To be reconfigured for residential use
- Total BSF: 185,000
- Units: 135 planned
- Zoning: Former industrial, approved for residential conversion
Key Investment Highlights:
- Originally built as an industrial structure
- Rare pre-war warehouse architecture
- Opportunity for elevator residential conversion
- Excellent proximity to Brooklyn Bridge Park and F-train subway
Market Strategy and Positioning
At the time of sale, Brooklyn’s waterfront neighborhoods—especially those adjacent to DUMBO—were experiencing a surge in interest from developers seeking adaptive reuse opportunities. The conversion of 220 Water Street represented a classic value-add strategy in a market hungry for residential product.
Bob Knakal’s marketing campaign positioned the asset as a generational opportunity, emphasizing the growing demand for housing in north Brooklyn and the premium value of large, convertible industrial spaces. The scarcity of similar parcels and the property’s character-rich shell made it an attractive candidate for a landmark-quality residential conversion.
Neighborhood Overview
Vinegar Hill, a small, historic enclave next to DUMBO, is known for its cobblestone streets, early 19th-century buildings, and tranquil atmosphere—offering a rare blend of history and proximity to innovation.
Nearby attractions and key highlights:
- Steps from Brooklyn Bridge Park and Empire Stores
- Minutes from York Street (F train) and ferry terminals
- Adjacent to DUMBO’s tech and creative scene
- Surrounded by boutique cafes, design studios, and art galleries
Conclusion
The successful $23.5 million sale of 220 Water Street showcases Bob Knakal’s deep understanding of the Brooklyn conversion market and his ability to position complex industrial assets for residential redevelopment. This sale adds to BKREA’s growing list of legacy transactions in Brooklyn’s most coveted neighborhoods.
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Frequently Asked Questions
Q1: What is the current use of 220 Water Street?
The property was sold as a conversion opportunity, transitioning from industrial use to residential, with plans for 135 units.
Q2: Why is Vinegar Hill an attractive neighborhood for residential development?
Vinegar Hill offers a historic charm, quiet streets, and proximity to both DUMBO’s tech scene and the Brooklyn waterfront, making it ideal for high-end residential projects.
Q3: What made 220 Water Street stand out to buyers?
Its scale (185,000 buildable SF), conversion potential, and location between DUMBO and the Navy Yard made it a rare and compelling investment opportunity.
