Midwood Investment & Development has acquired a four-story, 12,000-square-foot office building in Downtown Brooklyn for $9.5 million, purchasing the property from the Nakash family — the founders of Jordache Jeans who also owned the former Versace Mansion in Miami Beach.
The transaction, first reported by Crain’s New York Business on July 14, marks another chapter in the ongoing evolution of Downtown Brooklyn’s commercial real estate market, which has seen steady investor interest despite broader headwinds in the office sector nationwide.
The building at 423 Fulton St. represents a modest but strategic acquisition for Midwood, a firm known for its investments in New York City commercial properties. At roughly $792 per square foot, the price reflects the premium that well-located Brooklyn office assets continue to command, even as remote work has reshaped demand patterns across the five boroughs.
Downtown Brooklyn has emerged as one of the city’s most resilient office submarkets, benefitting from its proximity to major transit hubs, a growing residential population, and the expansion of tech and creative tenants priced out of Manhattan. The neighborhood’s office vacancy rate has remained below the citywide average, supported by demand from education, healthcare, and technology tenants.
The Nakash family, through various entities, has been an active real estate investor across multiple markets. Their portfolio has included properties in New York, Miami, and Las Vegas, spanning office, retail, and hospitality assets. The sale of 423 Fulton St. represents a partial portfolio reshuffling by the family, which has held interests across New York and South Florida real estate markets.
For New York’s commercial real estate sector, the deal is a modest but telling data point. While headline-grabbing transactions have slowed compared to the pre-pandemic peak, mid-market deals in well-positioned neighborhoods continue to clear. Investors like Midwood are focusing on properties that offer value-add potential — buildings where capital improvements and repositioning can justify the acquisition price in a market where Class A office space commands premium rents while older stock struggles.
The broader context includes a New York office market that is slowly stabilizing. After years of elevated vacancy rates following the pandemic, leasing activity has picked up in 2026, particularly in Brooklyn and Queens. Manhattan’s return-to-office rate has improved, and tenant demand for high-quality space in transit-accessible locations remains solid.
Still, the market remains bifurcated. Trophy assets in prime locations are performing well, while older buildings face pressure from conversion-to-residential initiatives and, in some cases, demolition. The Hochul administration’s new data center moratorium adds another layer of complexity, as tech tenants — a key demand driver for Brooklyn office space — may face constraints on their infrastructure expansion plans.
For Midwood, the Fulton Street acquisition signals confidence that Brooklyn’s office market will continue its gradual recovery, supported by the borough’s diversifying economy and growing appeal to companies seeking alternatives to Manhattan rents.
