Successful Sale of 42-50 Jay Street in DUMBO, Brooklyn
Bob Knakal successfully closed the sale of 42-50 Jay Street, a 72,000-square-foot office property in the heart of DUMBO, Brooklyn. Formerly operated by the nonprofit Phoenix House, this seven-story structure was acquired by Alloy Development for $52,250,000 and is being transformed into high-end residential condominiums.
This sale illustrates the continued momentum of DUMBO’s evolution from an industrial and nonprofit-heavy district into one of Brooklyn’s most sought-after residential enclaves. The property’s conversion potential, prime location, and robust scale made it an exceptionally attractive investment opportunity.
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Sale Details
This standout transaction was completed on March 5, 2019, for $52,250,000, reflecting a price of $725.69 per square foot.
- Buyer: Alloy Development
- Seller: Phoenix House
- Seller Type: Non-Profit
- Asset Class: Office (Conversion to Residential)
- Buildings on Site: 2
- Total Square Footage: 72,000
- Price per SF: $725.69
- Lot Size: 13,812 SF
- Stories: 7
- Sale Date: March 5, 2019
Property Details
Located at 42-50 Jay Street, between Water and Plymouth Streets, this corner property sits in the center of DUMBO—a neighborhood known for its cobblestone streets, converted warehouses, and creative energy. The buildings span two tax lots, offering exceptional frontage and scale for redevelopment.
- Full Address: 42-50 Jay Street, Brooklyn, NY 11201
- Zoning: M1-4/R7X (DUMBO Rezoning area)
- Historic District: Within the DUMBO Historic District (subject to LPC approvals)
- Year Built: Early 20th century warehouse conversion
- Stories: 7
- Lot Dimensions: 13,812 SF across two buildings
- Buildable Square Footage: 72,000 SF
Market Strategy and Positioning
DUMBO continues to be a magnet for developers and investors drawn to its unique blend of industrial architecture, creative economy, and proximity to Manhattan. The neighborhood’s limited supply of full-block parcels like 42-50 Jay Street makes this sale particularly noteworthy.
Alloy Development’s vision to convert the property into condominiums aligns with broader trends of adaptive reuse in Brooklyn, particularly in areas where former industrial buildings offer strong architectural bones for luxury residential products.
Neighborhood Overview
DUMBO (Down Under the Manhattan Bridge Overpass) has transformed into one of New York City's most vibrant and design-forward neighborhoods. The area is a hub for tech firms, creative agencies, and high-end retailers, drawing buyers who value both lifestyle and location.
- Steps from Empire Stores, Brooklyn Bridge Park, and Time Out Market
- Walkable to F, A, and C subway lines and ferry terminal
- Cobblestone streets and historic warehouse architecture
- Highly walkable and community-oriented environment
Conclusion
The $52.25 million sale of 42-50 Jay Street underscores DUMBO’s appeal as a destination for high-end condo conversions and adaptive reuse projects. Alloy Development’s acquisition represents both a vision for the future and respect for the area’s architectural past.
Bob Knakal’s advisory role in this transaction highlights his deep expertise in navigating complex conversions and his ability to match sellers with capable developers aligned with local market dynamics. This successful outcome reflects both market timing and strategic execution.
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Frequently Asked Questions
What was the property at 42-50 Jay Street originally used for?
It was previously used as nonprofit office space by Phoenix House.
What is Alloy Development’s plan for the site?
Alloy Development is converting the property into luxury residential condominiums.
Is the building located in a historic district?
Yes, it sits within the DUMBO Historic District, meaning any exterior modifications are subject to Landmarks Preservation Commission (LPC) approvals.
