GOWANUS — A developer is shelling out $50 million for a large piece of contaminated property on the Gowanus Canal.
Property Markets Group is in contract to buy 455-459 Smith St., one of the biggest pieces of vacant land directly on the canal, a spokesman for PMG confirmed to DNAinfo New York.
PMG is eyeing the property for a possible mixed-use project that would include a hotel, offices and shops, unnamed sources told The Real Deal, which first reported the sale.
The 166,000-square-foot parcel sits on the canal at Smith and Huntington streets. It was once the site of a manufactured gas plant and National Grid is now supervising an environmental cleanup there.
The property is right next door to the future site of Gowanus Green, a 774-unit affordable housing project that's been in the works since 2008.
There was once talk of Gowanus Green encompassing the property that PMG is now acquiring, but that vision did not come to pass.
The land is currently zoned for manufacturing, but Gowanus is expected to see zoning changes in the coming years that could open up the neighborhood to other types of development.
PMG also owns waterfront property along the canal on Nevins and Carroll streets. The developer bought a warehouse at 318 Nevins St. for $14 million in 2012.