While Bushwick’s heyday as the beer capital of the Northeast ended over a century ago, that hasn’t stopped New York City developers from chugging down sites situated near the former Rheingold Brewery. Demand for land near the budding Brooklyn enclave has climbed recently as competitive pricing and proximity to a host of amenities make it an enticing destination for real estate investment.

​(From left to right) Daniel Tropp, Investment Sales Professional; Connor Lyman, Analyst; and Amit Israni, Analyst, Ariel Property Advisors

After languishing last year, the development market in Brooklyn is buzzing again, with recent sales activity and contract signings signifying buyers and sellers have finally found mutual ground. Despite an overall downturn in the borough in 2017, Bushwick bucked the trend from a transactional standpoint, ranking third in sales volume. The popular neighborhood remains a beacon of light in 2018, particularly the 10-block area surrounding the famed location of the Rheingold Brewery.

Since projects on the site started topping out nearly a year ago, land values around the Rheingold Brewery site have increased. Residential development sites within a 0.5-mile radius of the site traded at an average $344 per buildable square foot since the third quarter of 2017. That is up 44% from the 12-months prior, according Ariel Property Advisors’ Investment Research Division. Over the same period of time, land in Bushwick further than 0.5-miles from the site fell 11%, averaging $172 per buildable square foot.

Confidence in the Rheingold location is impacting the development pipeline throughout Greater Bushwick. In 2018, about 52 projects are expected to come online in the neighborhood, significantly outpacing 2017’s 27 projects, according to data collected by Recity. Across all product types, about 1.4 million square feet is expected to emerge this year and another 1 million square feet is already anticipated for 2019.

Due to Bushwick’s predominantly R6 zoning, which encourages medium-density buildings, the Rheingold site is even more unique given its location is in an area not known for large-scale projects. For example, Yoel Goldman of All Year Management already began marketing the affordable units at 123 Melrose Street and 54 Noll Street, otherwise known as Evergreen Gardens. Some of the amenities include a pet spa, interconnected courtyards, and a 60,000-square-foot rooftop with an urban farm and pool.

Rabsky Group, meanwhile, is nearing completion of a large-scale project at 10 Montieth Street. David Korn of Fiddler Realty and Simon Dushinsky, co-founder of Rabsky Group, revealed that a full-out marketing campaign for the sprawling complex, called the “The Rheingold,” will begin in mid-June. The Rheingold, will feature a multi-level rooftop with a 100-foot sky bridge, spa, fitness center, a climbing wall, and an art gallery.

Brouhaha Over Brewery

In the mid-1800s, Bushwick was the foremost location for breweries and by 1890, 14 were operating within a 14-block area. New York City-based Rheingold Beer emerged in 1883, and by the 1950s, it comprised roughly one-third of the New York market for beer. Powerless to compete against the big national brewers, Rheingold shuttered operations in 1976.

Left dormant for decades, the site surrounding the old Rheingold brewery is now a bustling hub for construction activity. Anyone passing by this territory will notice the ubiquitous presence of cranes and scaffolding. Within the past few years, developers have enthusiastically broken ground and buildings have sprouted up swiftly.

Despite higher prices, developers will likely continue to plant their flag near the Rheingold site. One reason is that land values remain considerably higher in other surrounding neighborhoods, such as Williamsburg and Bedford-Stuyvesant. Along with pricing, developers are keenly aware of other factors that make land near the Rheingold site valuable. Indeed, this northwestern pocket of Bushwick is situated near a slew of attractions, including the Bushwick Collective, a trending bar scene, and new experiential retail tenants, such as Metrorock, a rock climbing facility.

As for transportation, the temporary shutdown of the L-train in 2019 could be detrimental to areas sitting along its path in Brooklyn, but it should have a minimal impact on this part of Bushwick as the area offers a wealth of alternatives, including the J, M, and Z subway lines. Furthermore, favorable demographics and an improving economy has also caused developers to flock to Bushwick.

Interest has picked up considerably in areas in Brooklyn deemed as having considerable upside, such as Bushwick. Developers and investors will continue to embrace value and favorable fundamentals, with the area surrounding the Rheingold Brewery site destined to remain high on their list.