Real Estate

Brooklyn’s Domino Sugar Refinery Lands Gotham Cannabis Dispensary in 10-Year Lease

Gotham signs 10-year lease for 4,000 sq ft at Brooklyn's historic Domino Sugar Refinery, marking its second NYC location.

By Tal Alexander

7/10, 15:03 EDT

Key Takeaway

  • Gotham cannabis dispensary signed a 10-year lease for 4,000 sq. ft. at Brooklyn's Domino Sugar Refinery, marking its second location.
  • Market rent in Williamsburg ranges from $88 to $240 per sq. ft., though Two Trees Management did not disclose the specific rent.
  • The historic Domino Sugar Refinery, initially intended for condos, now features Class A office space and unique retail opportunities with views of Manhattan.

Gotham's Strategic Expansion in Brooklyn

The historic Domino Sugar Refinery in Williamsburg, Brooklyn, is set to welcome a new tenant, Gotham, a licensed retail cannabis dispensary. Gotham has signed a 10-year lease for 4,000 square feet on the ground floor of 300 Kent Avenue, marking its second location after its flagship store in the East Village. This move underscores Gotham's strategic expansion in New York City, leveraging the unique and iconic setting of the Domino Sugar Refinery to attract a diverse clientele. Joanne Wilson, an angel investor and leader of Gotham, described the Williamsburg site as a "dream location," highlighting the significance of this development for the burgeoning cannabis retail market.

The Details of the Lease Agreement

While the exact rent for Gotham's new space was not disclosed, market rents in Williamsburg range from $88 to $240 per square foot, according to LoopNet data. The lease was brokered by Bonnie Campbell of Two Trees Management, who represented both the landlord and the tenant. The Domino Sugar Refinery, with its 460,000-square-foot glass dome and retro "Domino Sugar" sign, offers a distinctive retail environment with stunning views of Manhattan. This unique setting is expected to enhance Gotham's brand presence and customer experience, aligning with its upscale retail strategy.

Brooklyn's Ultra-Luxury Property Market

The Domino Sugar Refinery's transition from a planned condo development to Class A office space reflects broader trends in Brooklyn's ultra-luxury property market. Two Trees Management, which purchased the property in 2012 for $185 million, has faced challenges in securing tenants for headquarters locations. The entry of Equinox as the first tenant in late 2023 marked a significant milestone, and Gotham's lease further diversifies the tenant mix. This shift towards mixed-use development, combining retail, office, and recreational spaces, is indicative of the evolving real estate landscape in Brooklyn.

Implications for the Cannabis Retail Sector

Gotham's expansion into the Domino Sugar Refinery is emblematic of the growing acceptance and integration of cannabis retail into mainstream commercial real estate. The choice of a high-profile, historic location signals confidence in the sector's potential and its appeal to a broad customer base. This move also highlights the strategic importance of location and branding in the competitive cannabis market. As more states legalize cannabis, the demand for prime retail spaces is likely to increase, driving further innovation and investment in the sector.

Management Quotes

  • Joanne Wilson, Angel Investor and Leader of Gotham:

    "It was a dream location."