Jolie Development Advances While Trinity Place Holdings Exits Williamsburg Asset

Trinity Place Holdings Inc. (NYSE: TPHS) has completed the disposition of its stake in The Berkley residential property located at 223 North 8th Street in Williamsburg, Brooklyn, offloading the joint venture interest to TF Cornerstone for $71.02 million. The divestment represents a strategic move by the Manhattan-based real estate firm, which had maintained a 50% partnership interest in the asset since December 2016 alongside co-investor Pacolet Milliken.

The company plans to deploy the sale proceeds—following mortgage repayment and settlement of the associated interest rate swap—toward corporate working capital and prospective investment initiatives. Matthew Messinger, CEO and President of Trinity Place Holdings, characterized the transaction as a well-timed market opportunity. “Capitalizing on present market dynamics enabled us to execute this strategic exit,” Messinger noted. He emphasized that robust demand persists for premium multifamily developments across key New York City neighborhoods, even amid volatile interest rate environments.

Market Performance at The Berkley

Despite pandemic-related challenges that elevated vacancy rates and sparked leasing incentives across New York City properties, The Berkley demonstrated resilience. The asset maintained 99% occupancy through the preceding 12 months, with net effective rent growth reaching approximately 20% on newly executed leases—a performance metric underscoring the underlying strength of the Brooklyn residential market.

Jolie Project Momentum Continues

Construction advancement continues at Jolie, Trinity Place Holdings’ mixed-use development initiative at 77 Greenwich Street in Lower Manhattan. The structural construction hoist was removed during February 2022, with facade installation progressing across previously obstructed areas. Interior buildout has commenced throughout the largest residential units positioned along the former hoist corridor (designated A line units).

The New York City Department of Buildings is issuing temporary certificates of occupancy (TCO) on a phased basis for these premium units, with initial issuances anticipated during summer 2022. Upon TCO clearance, residents will gain access to their residences. Concurrently, Cloud Club 77—the rooftop amenity destination spanning the building’s upper levels—is similarly expected to achieve its TCO this summer, unlocking the full range of resident amenities and outdoor programming spaces.

Company Overview

Trinity Place Holdings operates as a diversified real estate investment, development and management platform. Its primary asset portfolio includes the Jolie mixed-use complex featuring 90 residential condominiums, ground-level retail, and an elementary school facility. The company additionally holds a recently completed 105-unit multifamily building at 237 11th Street in Brooklyn and maintains a 10% joint venture interest in a 234-unit residential property at 250 North 10th Street, also in Brooklyn. A retail property in Paramus, New Jersey completes the real estate holdings.

Beyond real estate operations, Trinity Place Holdings controls intellectual property including the Filene’s Basement brand, inherited from its predecessor Syms Corp. The company also carries approximately $247.5 million in federal net operating loss carryforwards available for future tax optimization, alongside corresponding state and local NOL positions as of December 31, 2021.