Crown Heights' Restored Nassau Brewery Likely to Survive Looming Bankruptcy Auction

The latest salvo in a long-running adaptive reuse project in Crown Heights has revealed the ambitious project has finally wrapped and is likely to survive a looming bankruptcy auction — at least initially.

After years of work to restore and adapt the historic Nassau Brewery at 945 Bergen Street for modern use, construction has finally finished and its newly created apartments and stores have been rented out. At the same time, trouble among the investors has led to bankruptcy proceedings.

An investor who came on board in 2016 with a $5 million cash infusion asserted control over the project, filed a Chapter 11 bankruptcy proceeding, and intends to sell the property, PincusCo reported in July.

In recent weeks, commercial real estate agents Cushman & Wakefield said they are seeking a stalking-horse bidder for a bankruptcy auction of the property. (A stalking-horse bidder is a potential buyer who sets the initial lowest bid.)

The announcement said the project was recently completed using historic tax credits and the structure cannot be razed for at least five years or the owner will owe back taxes. The brewery now houses 38 rental apartments and four stores, many of which went on the market in the last year or two, Streeteasy shows. The building does not yet appear to have a final certificate of occupancy.

Title records show the property has not changed hands since 2015. In 2008, Crow Hill Development LLC purchased it from 945 Bergen Street LLC for $7.5 million. The name of the current owner is Nassau Brewing Company Landlord LLC.

The brewery dates from the 1860s and once occupied the entire block. It ceased operations in 1916. It is in an area where until recently residential uses were not permitted. The Crown Heights community board wants to upzone the area to permit housing while also including light industrial use to preserve jobs, called the M-Crown rezoning.

Although the site is not a protected city landmark, in 2015 it was listed on the National Register. In 2014, Yoel Goldman of All Year Management bought the Dean Street side of the property from Crow Hill Development owner and Nassau Brewery developer Fabian Friedland for $17.5 million, and it is now a building designed by ODA with apartments and stores.

“The historic nature of the old brewery buildings first attracted me to the site,” Friedland said in a statement in 2015. “After a long wait, I’m truly thrilled to bring these buildings back to life. The Franklin Avenue corridor of Crown Heights is a vibrant place to be right now. And it’s exciting to have our project reinforce the existing architecture and character of the neighborhood.”

Related Stories

• Despite Recent Progress, Bankruptcy Threatens Long-Anticipated Nassau Brewery Restoration
• Renderings Show Subterranean Bar, Other Plans at Crown Heights’ Nassau Brewery Site
• Past and Present: Nassau Brewing Company

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