Major Deal at Massive Sunset Park Building Near MDC Jail Involves $117.6 Million Loan

Liberty View Industrial Plaza, the massive eight-story building on Third Avenue just south of the federal MDC jail in Sunset Park, is at the center of a major real estate deal involving a $117.6 million loan and a 49% ownership stake.

Acadia Realty Trust acquired the loan from Blackstone and purchased the stake held by Madison Capital and Meadow Partners, according to PincusCo. The complex at 850 Third Avenue, now known as Liberty Bklyn, contains approximately 1.3 million square feet.

The $117.6 million figure is the loan's original principal, not a confirmed sale price for the building. The prices Acadia paid for the debt and the ownership stake were not available in the accessible reporting.

The former U.S. Naval storage building was purchased by Salmar Properties in 2011 for $11 million. Salmar invested roughly $130 million to turn the vacant warehouse into manufacturing and industrial space, with city tax benefits tied to keeping most of the building available for manufacturing.

After the industrial leasing plan struggled, the city allowed a large portion of the property to be used for offices in 2020. A $300 million recapitalization brought in Madison Capital and Meadow Partners, with Madison taking over management. Acadia also invested $54 million in preferred equity at that time.

The building now houses a mix of industrial, office and retail space, along with a 3.2-acre rooftop farm. Acadia's latest acquisitions expand its investment in the property; no new conversion or redevelopment plan was identified in the available reporting.