EAST WILLIAMSBURG — Three hotels are planned for the industrial area around East Williamsburg near Bushwick, another sign of growing commercial development in the area, experts say.
Heritage Equity Partners' property at 232 Seigel St. — purchased last year for $28.3 million — will be a 10-story hotel with 144 units, pending city approval, according to Department of Building records.
News of the development was first reported by New York YIMBY.
Elsewhere in the area, developers have also filed plans to build a nine-story, 140-unit hotel at 27 Stewart Ave. and a seven-story, 112-unit hotel at 69 White St.
In total, nearly 400 new hotel units could be around the Morgan Avenue L train stop if building permits are approved.
In addition to providing more hotel rooms, the planned properties would be contributing to the growing bar and restaurant scene in the neighborhood.
The planned hotel at 232 Seigel St. is proposing a restaurant on the first floor, according to the DOB.
The one at 27 Stewart Ave. has plans for a bar or lounge in the cellar.
And the one at 69 White St. has plans for a restaurant and open plaza on the ground floor and a bar on the top floor, according to building permits.
With building designers like ODA Architects and Morali Architects, it's possible that the hotels will have modern looks.
The owners of the three properties did not respond to requests for comment.
Commercial developments have been pumping up in the area that was once primarily industrial, especially since manufacturing zoning limits developers to build either offices, retail spaces or hotels, experts said.
Recently, news came out that a massive "creative community" complex with office space, retail and rooftop dining would be built within the next year at 333 Johnson Ave., also near the Morgan Avenue L train stop.
The growth could continue, judging by the amount of sales in the area last year, experts said.
East Williamsburg — bordered by the BQE, Broadway, Flushing Avenue and the English Kills — saw a huge jump in prices for developments and industrial properties in 2014, according to a study by broker Cushman and Wakefield.
Development sale prices rose by 42 percent, while industrial sales rose by 92 percent, the report showed.
It was the busiest area for sales in North Brooklyn last year, with 100 commercial property sales and $505 million changing hands, according to the report.
The huge jump in industrial prices indicates that most buyers expect to transform properties previously used for manufacturing into those for office use — a change that would bring far higher rent prices from tenants, said Brendan Maddigan, a director of sales at Cushman and Wakefield.
It could potentially lead to the Morgan Avenue stop turning into a hub of tech or artisanal food businesses, he said.
"The fact that they’re all close to each other [would be] really powerful," Maddigan said. "That area could be known for that."
The addition of hotels is simply another bet that the neighborhood could flourish for business, said Dan Marks, VP of Investment Sales at TerraCRG, which was involved in the 333 Johnson Ave. sale.
Any small local companies can book them for guests or customers, while tourists seeking "that gritty old Brooklyn vibe" can head to the area for a more authentic experience, Marks said.
"I think it’s going to do extremely well," Marks said. "It’s going to be a Gowanus part two."
Without as much residential property in the immediate area, hotel guests can fill in the role of residents by supporting the increasing number of bars, restaurants and cafes, too, said Jin Lee and Joshua John, partners at investment firm Royalton Capital.
And despite the growth in local sales, the partners at Royalton, which owns several properties in the area and invested in 333 Johnson Ave., think the blueprint for the neighborhood is still in flux.
"A clear trajectory" around Morgan — which some call East Williamsburg and others call Bushwick — has yet to be defined, John said.
"We’re very excited about this neighborhood," Lee said. "It’s going to be a very special place."
