Contested Crown Heights Supermarket Site Sold To New Developer

CROWN HEIGHTS, BROOKLYN — Just weeks after resolving a years-long negotiation about the future of Associated Supermarket, owners of the contested site on Nostrand Avenue have sold the property.

Midwood Investment & Development announced this week that they have sold the 975 Nostrand Ave. site where Associated now stands to Hudson Companies, who will continue a plan to knock down the building and construct mixed-income housing.

Hudson will maintain a deal Midwood made with Associated owner Pablo Espinal to run a new, bigger supermarket in the new building, developers said.

Midwood did not specify a reason they decided to sell the site beyond that they believe it "puts the property on the best path for success." They have owned 975 Nostrand Ave. since 1970.

“Over the last 50 years we have remained a committed member of the Crown Heights community and are proud to have worked with Hudson, a developer who shares our commitment, to ensure that this site continues to play a vital role for the neighborhood,” Midwood President John Usdan said in a press release.

The sale comes just weeks after Midwood announced their own plans for a mixed-use development on the property and the deal with Espinal to take over 21,000 square feet for a supermarket, though few other details were released about the specifics of the new building.

Associated closed on July 31 and is expected to start its 15-year lease in the new building when construction is complete.

Similar to Midwood, Hudson has said the new development will include mixed-income housing, small-scale, neighborhood retail and a community facility space.

“As long-time believers in this neighborhood, we’re excited for the opportunity to create much-needed housing, while supporting the preservation of a valued neighborhood business," Hudson President David Kramer said. “We know that thoughtful development can serve multiple needs and look forward to delivering an excellent project to our neighbors in the Crown Heights and Prospect Lefferts Gardens communities.”

News about Associated's potential closure first made headlines earlier this year, when neighbors learned it had been issued a 90-day vacate order. Thousands of residents who worried its closure would turn the lower section of Crown Heights into a food desert signed a petition and held rallies aimed at keeping it open.

Midwood, who has owned the property since 1970, contended the vacate order came only after Espinal rejected their offer of $300,000 buyout and the right of first offer on supermarket space planned for the new building.

The developers even ended up suing Espinal for what they said was a "smear campaign" against the company, according to reports at the time.