YS Developers Reworks Clinton Hill Development From RXR

Yitzchok Schwartz’s YS Developers filed new plans for the 2.6-acre Clinton Hill site once occupied by RXR’s The Hall complex, calling for the demolition of six buildings and three ground-up developments with office, residential and religious uses, according to Bisnow and first reported by PincusCo.

The filings mark a sharp departure from RXR’s earlier vision for the full-block Brooklyn site, which had spent years as a migrant shelter before closing this spring, and set up one of the larger Clinton Hill development plans to hit the Department of Buildings this year.

How It Started

RXR bought the 550,000-square-foot site in 2016 for $160 million. The firm invested another $100 million to convert the existing structures into a commercial hub called The Hall. The pandemic derailed those luxury office plans. NYC Health + Hospitals later used the property as a temporary shelter for asylum-seekers. The shelter closed in March, leaving the site vacant.

RXR had secured zoning approval for 650,000 square feet of new housing before the sale. The plan called for a nine-building mixed-use redevelopment. It included a 21-story residential tower and eight converted buildings. The project would have delivered 620 rental units. YS Developers’ new filings now propose a much larger residential footprint.

The Details

YS Developers’ largest proposed building, at 33 Hall St., would span 159,000 square feet across 13 stories. It would include an office tower and a ground-floor synagogue with men’s and women’s shuls. Terraces would sit on the seventh and 13th floors.

At 1 Hall St. and 4 Ryerson St., the firm plans two 15-story mixed-use buildings. Each would contain 84 units and commercial space. Plans also include lobbies, package rooms, bike storage, and underground parking for 48 cars.

Total unit counts vary by filing. Proposals range from 425 to as many as 974 units. YS Developers also plans to convert 14 Ryerson St. into 89 units. The firm would add six units to the first floor of 313 Park Ave. without demolishing the building. Parts of the original complex would therefore remain intact.

Zooming Out

YS Developers bought the site from RXR for $121.4 million in April. That was about $40 million below RXR’s original purchase price. The discount reflects the challenge of finding viable uses for stalled office-conversion sites. That comes even as luxury housing demand remains strong elsewhere in Brooklyn.

YS Developers has several other Brooklyn projects underway or proposed. Those include a 300-unit condo project near the Brooklyn Botanic Garden. Several developers have previously tried to build there, including Ian Bruce Eichner. Community opposition helped derail those efforts.

The firm also bought a Bedford-Stuyvesant development site with Rabsky Group for $23.5 million this month. Other proposals include a 20-unit building at 25 Marcus Garvey Blvd. and a five-story, 10-unit building at 599 Willoughby Ave.

Why It Matters

The shift from RXR’s office-focused plan to housing and religious uses highlights a broader trend. Stalled Brooklyn office sites are being repriced and redesigned for residential development. That is happening even as the remaining Brooklyn office market posts decade-low availability.

For RXR, the discounted sale shows the cost of abandoning a pandemic-era bet. The site already had zoning approval, yet the original vision still failed to move forward. That makes the deal a warning for owners holding large, entitled sites that have yet to break ground.

What’s Next

Schwartz could not be reached for comment. It also remains unclear how quickly YS Developers will move from filings to construction. The site has already changed hands and plans several times.

Watch for community response to the synagogue and office components. Similar opposition has affected YS Developers’ project near the Brooklyn Botanic Garden. Also watch for changes to the proposed unit count as the Department of Buildings reviews the filings.