Luxury developer Alloy snaps up after-school facility near Brooklyn Navy Yard

Excerpt from Crain’s New York Business: Luxury builder Alloy Development has purchased a Boys & Girls Club facility near the Brooklyn Navy Yard for $15 million in a deal intended to generate funds for the club to help it pay for a $22 million settlement relating to abuse claims.

A flood of lawsuits from the apparent victims of a doctor who once worked for the organization forced the century-plus-old Madison Square Boys & Girls Club to declare bankruptcy in 2022.

But in the summer, a bankruptcy judge ordered the club to sell its space at 240 Nassau St. to help reimburse the more than 100 victims, which effectively allowed the organization to go back into business.

Shortly after the ruling, Alloy went into contract on the low-slung brick property and closed this month. Though the Boys & Girls club had initially expected it would have to discontinue service at 240 Nassau, that decision was met with outrage by neighbors. But this month new landlord Alloy said it will invest in the club in order to reopen it at the same facility sometime in 2024.

The development firm, which is known for creating stylish condos in nearby Dumbo, has not revealed its long-term plans for the site, a brick building from the 1970s near Navy Street that could conceivably be demolished and replaced with something larger.

Emails and calls to Alloy executives were not returned by press time. But in a statement released on Alloy’s website this month, the company suggested it would solicit ideas for future plans from people who have depended on 240 Nassau’s after-school services, including residents of nearby public housing developments such as the Farragut Houses.

“As we work to get Madison operational, we’re also eager to begin a robust community engagement process so we can sit at the table with our neighbors and learn from them about how this site can best serve seniors, children and other residents for many years,” said Alloy CEO Jared Della Valle in the statement.

The $15 million purchase, which was financed with a $10 million mortgage from Maxim Credit Group, closed Nov. 16 and appeared in the city register Wednesday. With it, Alloy takes control of a 24,000-square-foot plot near the Brooklyn-Queens Expressway whose surrounding blocks, walled off from the Navy Yard, have for decades felt desolate.

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