Mechanism

for

Community & Connection in Manufacturing

Revitalizing Brooklyn: How GMDC Creates Jobs Through Industrial Spaces

Considered the longstanding example of a successful multi-tenant industrial space, the Greenpoint Manufacturing and Design Center (GMDC) was born out of a good deal. Its current home is a 366,000-square-foot old textile mill in Brooklyn on Manhattan Avenue that was sold by the city to GMDC for just $1 back in 1992. Since then, GMDC has put its name on five other multitenant industrial spaces across the city, including a newly renovated 85,000-square-foot facility in Ozone Park that used to house a bicycle manufacturer. Brian T. Coleman, GMDC’s Chief Executive Officer, notes that their impetus is simple. ”It’s all about the jobs,” said Coleman. Their six buildings house over 110 businesses that employ more than 700 people.

Most of that economic activity is going on in the Manhattan Avenue building—the one purchased for a buck. Its 74 tenants employ about 400 people, and on average those employees make about $50,000 a year. Almost all of them come from within the city.

Rents range from the mid-teens to low-twenties in dollars per square foot, according to Coleman, which amount to rates that are 15 to 20 percent below market rates for industrial space in the area. When tenants need help with issues like workforce or business development, GMDC connects them with outside non-profits; the developer itself prefers to solely focus on real estate. “We’re looking to give the tenants quality space, charge them a fair amount for that space, cover the overhead of the organization, but that’s it,” said Coleman. “We’re not looking to make a profit. We’re looking to break even.” Coleman said the main quality they look for in tenants is that they can employ a significant amount of people relative to the size of the space they lease. Startups are generally a no-go, and in this case that usually means businesses that are less than two years old, not operating in a formal capacity, or not showing signs of a profit or breaking even.

That raises the chance GMDC will continue to have an economic impact in and beyond the neighborhoods where its buildings are located. “Our tenants come to make money and make products,” said Coleman. “The community interacts with us because the community is employed here or other community businesses might provide goods and services to our tenants.”

Q&A

Why does manufacturing matter to GMDC?

As Coleman stated above: “All about the jobs.”

Did GMDC have a history of manufacturing development before developing the Manhattan Avenue project?

The original GMDC building was GMDC’s first manufacturing project.

Was there a history of manufacturing in the neighborhood around Manhattan Avenue?

Yes.

How important is it to maintain fabrication activity in the Manhattan Avenue building?

Manufacturing is the reason the building exists.

What role does GMDC’s board play in its projects?

The board provides guidance from a development perspective. It does not play a big role in fundraising as the organization relies on operating income.

Is GMDC involved in workforce or other initiatives outside of property management?

No. They rely on other non-profits that do business assistance or workforce development. Is GMDC involved in creative placemaking work that involves tenants, the building, and residents from the nearby neighborhood? No.

Is the Manhattan Avenue project breaking even or profitable?

GMDC’s projects are breaking even.

Are there opportunities for non-tenants to interact with the Manhattan Avenue building and the manufacturers inside?

There are artist tenants that have open house-like events. But for the most part it is not a community space.

What type of entity is the developer?

Non-profit industrial developer.

Did GMDC receive assistance from local government?

Yes, from both local and state sources. They include the New York City Council, New York City Economic Development Corporation, New York City Industrial Development Agency, New York City Neighborhood Capital Corporation, New York City Regional Development Council, and New York State Empire State Development.

How many tenants are in the Manhattan Avenue building?

74

What types of tenants are present?

Woodworkers, metal workers, ceramic artists, jewelry makers, and other custom fabricators.

How many tenants are businesses?

All.

How many are production businesses?

All.

How many jobs are supported by the Manhattan Avenue building?

400 employees from adjacent communities.

How many jobs are supported by manufacturing?

All.

How are tenants selected?

Tenants must show that they can afford rent and will employ an adequate number of employees for the size of space they’re renting. They do not accept startups that have been operating for less than two years.

How does GMDC ensure affordability?

By aiming to break even instead of making a profit.

What are GMDC’s sources of financing?

At Manhattan Avenue, GMDC has only received New York City funding and financing from local banks such as Independence and BNB Bank. At other projects, they have used funding from New York State and City partners and financing from Bank of America, Chase, and other banks.

Did GMDC receive any tax credits?

No, not at Manhattan Avenue. At GMDC’s other developments they have used both New Markets Tax Credits and Rehabilitation Tax Credits.

What was the size of the real estate deal at Manhattan Avenue?

GMDC bought the 366,000 sq. ft. of industrial space and basement area for $1, in exchange for renovating and modernizing the structures.

What was the total cost of bringing the Manhattan Avenue space online?

In total, GMDC has put around $15 million into the project, according to local media.

What is the rent per square foot?

From mid-teens to low-twenties, which are 15 to 20 percent below market rate.

How long are the lease terms?

Average lease is five years. Total square feet? 366,000.

This case study was originally published by Urban Manufacturing Alliance in 2019 as part of “All About the Jobs: Eight Mission-driven Industrial Developers on How Their Spaces Anchor Manufacturers and Support Local Economies,” a project developed in partnership with Local Initiatives Support Corporation (LISC) and students at the Albany Law School Community Development Clinic.

Considered the longstanding example of a successful multi-tenant industrial space, the Greenpoint Manufacturing and Design Center (GMDC) was born out of a good deal. Its current home is a 366,000-square-foot old textile mill in Brooklyn on Manhattan Avenue that was sold by the city to GMDC for just $1 back in 1992. Since then, GMDC has put its name on five other multitenant industrial spaces across the city, including a newly renovated 85,000-square-foot facility in Ozone Park that used to house a bicycle manufacturer. Brian T. Coleman, GMDC’s Chief Executive Officer, notes that their impetus is simple. ”It’s all about the jobs,” said Coleman. Their six buildings house over 110 businesses that employ more than 700 people.

Most of that economic activity is going on in the Manhattan Avenue building—the one purchased for a buck. Its 74 tenants employ about 400 people, and on average those employees make about $50,000 a year. Almost all of them come from within the city.

Rents range from the mid-teens to low-twenties in dollars per square foot, according to Coleman, which amount to rates that are 15 to 20 percent below market rates for industrial space in the area. When tenants need help with issues like workforce or business development, GMDC connects them with outside non-profits; the developer itself prefers to solely focus on real estate. “We’re looking to give the tenants quality space, charge them a fair amount for that space, cover the overhead of the organization, but that’s it,” said Coleman. “We’re not looking to make a profit. We’re looking to break even.” Coleman said the main quality they look for in tenants is that they can employ a significant amount of people relative to the size of the space they lease. Startups are generally a no-go, and in this case that usually means businesses that are less than two years old, not operating in a formal capacity, or not showing signs of a profit or breaking even.

That raises the chance GMDC will continue to have an economic impact in and beyond the neighborhoods where its buildings are located. “Our tenants come to make money and make products,” said Coleman. “The community interacts with us because the community is employed here or other community businesses might provide goods and services to our tenants.”

Q&A

Why does manufacturing matter to GMDC?

As Coleman stated above: “All about the jobs.”

Did GMDC have a history of manufacturing development before developing the Manhattan Avenue project?

The original GMDC building was GMDC’s first manufacturing project.

Was there a history of manufacturing in the neighborhood around Manhattan Avenue?

Yes.

How important is it to maintain fabrication activity in the Manhattan Avenue building?

Manufacturing is the reason the building exists.

What role does GMDC’s board play in its projects?

The board provides guidance from a development perspective. It does not play a big role in fundraising as the organization relies on operating income.

Is GMDC involved in workforce or other initiatives outside of property management?

No. They rely on other non-profits that do business assistance or workforce development. Is GMDC involved in creative placemaking work that involves tenants, the building, and residents from the nearby neighborhood? No.

Is the Manhattan Avenue project breaking even or profitable?

GMDC’s projects are breaking even.

Are there opportunities for non-tenants to interact with the Manhattan Avenue building and the manufacturers inside?

There are artist tenants that have open house-like events. But for the most part it is not a community space.

What type of entity is the developer?

Non-profit industrial developer.

Did GMDC receive assistance from local government?

Yes, from both local and state sources. They include the New York City Council, New York City Economic Development Corporation, New York City Industrial Development Agency, New York City Neighborhood Capital Corporation, New York City Regional Development Council, and New York State Empire State Development.

How many tenants are in the Manhattan Avenue building?

74

What types of tenants are present?

Woodworkers, metal workers, ceramic artists, jewelry makers, and other custom fabricators.

How many tenants are businesses?

All.

How many are production businesses?

All.

How many jobs are supported by the Manhattan Avenue building?

400 employees from adjacent communities.

How many jobs are supported by manufacturing?

All.

How are tenants selected?

Tenants must show that they can afford rent and will employ an adequate number of employees for the size of space they’re renting. They do not accept startups that have been operating for less than two years.

How does GMDC ensure affordability?

By aiming to break even instead of making a profit.

What are GMDC’s sources of financing?

At Manhattan Avenue, GMDC has only received New York City funding and financing from local banks such as Independence and BNB Bank. At other projects, they have used funding from New York State and City partners and financing from Bank of America, Chase, and other banks.

Did GMDC receive any tax credits?

No, not at Manhattan Avenue. At GMDC’s other developments they have used both New Markets Tax Credits and Rehabilitation Tax Credits.

What was the size of the real estate deal at Manhattan Avenue?

GMDC bought the 366,000 sq. ft. of industrial space and basement area for $1, in exchange for renovating and modernizing the structures.

What was the total cost of bringing the Manhattan Avenue space online?

In total, GMDC has put around $15 million into the project, according to local media.

What is the rent per square foot?

From mid-teens to low-twenties, which are 15 to 20 percent below market rate.

How long are the lease terms?

Average lease is five years. Total square feet? 366,000.

This case study was originally published by Urban Manufacturing Alliance in 2019 as part of “All About the Jobs: Eight Mission-driven Industrial Developers on How Their Spaces Anchor Manufacturers and Support Local Economies,” a project developed in partnership with Local Initiatives Support Corporation (LISC) and students at the Albany Law School Community Development Clinic.