Development of East Harlem site moves ahead

Real Estate Weekly, Sept 11, 1996

BDG, Ltd., with its partner, Canyon Partners, successfully competed in a public auction for the site some 90 days ago. The Washburn site is bounded by the FDR Drive and the Harlem River on the east, Pleasant Avenue on the west, 119th Street on the north and 116th Street on the south. Preliminary plans call for a number of complimentary commercial uses on the site. Under study is one plan that would welcome companies that range from well known national retailers to local entrepreneurs from throughout East Harlem.

David Blumenfeld, executive vice president of BDG, Ltd., said that closing will place the project's future in high gear, with the first step consisting on community input. "This is one of the most important economic milestones to take place in East Harlem in a generation," he said. "How it is developed must be in partnership with the neighborhood and that process has already begun."

Discussions are also being held with state and city officials to ensure that reviews and approvals for the site are carried out in a comprehensive but expeditious manner. "Economic development officials in the city and state have consistently said that they want to see the Washburn property economically 'recycled' into a project that will create jobs for the community, tax revenue for government and pride in our ability to attract new investment into New York," said Blumenfeld. "That is part of our mandate for Washburn and we are aggressively pursuing that strategy."

BDG, Ltd. is planning a series of summer "walk throughs" for community leaders so that they can see the site for themselves and appreciate the economic potential of the property. Blumenfeld says Washburn has been in decay for so long that, for many, the property has become little more than an abstract.

A Company with a Proven Track Record

BDG, Ltd. enjoys a reputation for acquiring aging properties in prime locations and recreating them as new commercial, retail and industrial space that can meet the needs of the most demanding companies.

Typical is their award-winning Bulova Corporate Center adjacent to LaGuardia Airport in Astoria, Queens. A one time manufacturing facility, BDG, Ltd. rescued the art deco design elements of the original building while creating soaring atrium space, a modern and effective office environment and then added whimsical art work that continues to delight visitors and employees alike.

Today, British Airways leases 180,000 square feet of the 485,000 square-foot building for their North American Headquarters. The building is fully leased and Blumenfeld is about to embark on the second phase of the Bulova multi-use project. The surrounding community uses the property as a "village square" and is delighted to have the building as its neighbor.

For BDG, Ltd. the closing on the Washburn site marks the continuing evolution of a company that has successfully outflanked the real estate recession of the last decade. And BDG, Ltd. is far from finished. They have aggressively moved into building management, upgrading their computer systems to track everything from cleaning supplies to window washing to anticipated roof repairs.

Canyon Partners Committed to Venture

Their partner, Canyon Partners, is a Los Angeles-based money management firm and registered investment advisor specializing in value added, event-driven investing. Canyon's principals have been involved in the acquisition, development and financing of commercial real estate ar, & mortgage related instruments for many years.

Gross real estate assets owned or advised by Canyon currently exceed $1.1 billion and include 12 million square feet of office, industrial and retail space, 8,500 multifamily units and half a dozen hotels. Equity investments in properties are funded from either the firm's internal capital or from discretionary investment accounts the firm has under management.

Canyon Managing Partner K. Robert Turner said, "From our vantage point, we see both a neighborhood and government commitment to this type of innovative economic development. We are delighted to be involved in a project that holds such enormous potential for the community and one that builds on the strength of the neighborhood, the skills of the development team and the leadership of City and State officials."