Brooklyn Brewery Relocation | 1 Wythe Avenue
Case Study: Brooklyn Brewery's Relocation to 1 Wythe, Williamsburg
Winner of the Henry Hart Achievement Award for REBNY's 79th Most Ingenious Retail Lease of the Year 2022
PART 1: Navigating Complex Needs for a Brewery's Relocation
Nathaniel Mallon, of Verada, demonstrated exceptional expertise in securing Brooklyn Brewery's relocation to its new Williamsburg headquarters. The challenging multi-use requirements, the light manufacturing FAR component, and the lease execution without plans or DCP approval were successfully achieved.
- Proposed New Location: 1 Wythe, Brooklyn, NY (Williamsburg)
- Proposed Building: 78,000 SF
- Leased Space: 41,000 SF
- Completion Scheduled: February 14, 2023
PART 2: The Brewery's Relocation Journey
Brooklyn Brewery, an iconic figure in the American craft beer scene, faced a critical need for relocation before its existing lease expired in January 2025. Verada's Nathaniel Mallon successfully brokered a 30-year lease, ensuring the brewery's continuity within the neighborhood.
- Relocation Site: 1 Wythe Avenue
- Unique Mixed-Use Requirements: Retail, tasting room, brewery, restaurant, event space, manufacturing, warehouse, and office space
- Development Timeline: Groundbreaking in early 2023, with the new location opening in the summer of 2024
PART 3: Complex Negotiations and Community Engagement
Mallon's journey with Brooklyn Brewery began in 2019 when he recognized the potential for the brewery's relocation. Leveraging his community and political connections, he secured a 41,000 SF lease at 1 Wythe, navigating complex logistics, an in-depth lease, and a 4-party SNDA agreement.
- Key Elements of the Deal: 30-year lease with options, rent schedules, option-to-purchase, and a host of agreements
- Benefitting the Tenant and Landlord: Lower building and financing costs while accommodating multiple needs and time constraints
PART 4: Eric Ottaway's Perspective
Eric Ottaway, CEO of Brooklyn Brewery, highlights the four key factors that made the 1 Wythe transaction possible: understanding complex needs, navigating lease negotiations for an unbuilt building, and having the vision to bring together two different parties with shared challenges.
- A Unique Opportunity: Landlord's need for an early anchor tenant, and the brewery's requirement for a unique combination of industrial, warehouse, retail, and office space
- Praise for Nathaniel Mallon: His ability to understand complex issues and navigate different negotiating styles
PART 5: Community and Industry Responses
Community leaders and industrial business advocates celebrate Brooklyn Brewery's continued presence in the Williamsburg area. The successful relocation fulfills local industrial business goals and demonstrates the positive impact of collaborative efforts.
- Evergreen's Perspective: Thrilled about Brooklyn Brewery's expansion and space retention in the industrial business zone
- Everyone Wins: A testament to the power of collaboration and creative solutions in real estate
Brooklyn Brewery CEO Eric Ottaway:
“Getting the 1 Wythe transaction done relied upon four key factors: understanding our complicated needs (industrial, retail, office, warehouse), understanding the landlord’s needs (manufacturing tennant to fulfill zoning requirements, anchor lease to improve financing), navigating the dynamic of negotiating a lease for an unbuilt building still undergoing DCP review, and having the vision to put together two very different parties with a shared challenge.
I first met Nate four years ago when he presented a nearby property to us. While that transaction ultimately didn't work, it provided the foundation for our eventual deal at 1 Wythe. In fact, without that failed transaction the 1 Wythe deal probably would not have happened since Nate was able to really understand our needs in depth by studying why the transaction didn't work. Equally importantly he also learned our approach to deal making and our negotiation style.
The 1 Wythe building had been approved by the DCP with a significant amount of ground floor industrial space in order to qualify for the IBIA incentive, and an entire floor below ground. Finding an industrial tenant that could occupy that kind of building was going to be a challenge. He also knew that completing a lease for a yet to be built building still undergoing DCP review was going to be a monumental task.
All that being said, Nate understood that both sides had a unique opportunity to fulfill each other's requirements and timing for a deal. The landlord needed an early anchor tenant to improve his financing and to fulfill his industrial tenant requirement, and we needed a space in the neighborhood with a unique combination of industrial, warehouse, retail, and office, that avoided a big lease overlap.
Ultimately, his understanding of all the above issues, and his ability to navigate two very different negotiating and legal styles to construct a deal both parties were happy with says a lot about his ability as a real estate broker. “ ~ Eric Ottaway, CEO Brooklyn Brewery
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