DDG Partners is set to buy the 56,000-square-foot factory at 325 West Broadway at Grand Street for $650 to $700 per square foot, Crain’s reported. The block-through property consists of four buildings and has frontage on Wooster Street.
The seller was Lehman Brothers Holdings Inc., which took over the site after previous owner ADG-Soho LLC defaulted on its $19 million loan in 2010. Lehman retained real estate investment adviser HFF to sell the buildings.
ADG-Soho bought the former factory from Tootsie Rolls Industries in 2005 for $23 million, intending to restore some of the buildings and construct a nine-story, 20-unit condominium called The Chocoate Factory. Beyhan Karahan & Associates Architects posted renderings of the project, but the financial crisis in 2008 scuttled the development plans.
DDG has yet to announce what it will do with the site. The firm acquired a Tribeca site at 12-14 Warren St. earlier this year for $14.8 million, with plans to construct a condo consisting of only duplex, full-floor and half-floor homes. The developer’s 37-unit Meatpacking condo at 345 W. 14th St. is expected to be completed by 2014, with sales launching in the fall.