Renaissance Plaza: full speed ahead.

A new agreement with the city, a new hotel partner, and a new investor/user are bringing the Muss Development Corp.'s Renaissance Plaza in downtown Brooklyn closer towards a late-year groundbreaking.

According to Joshua Muss, nothing about the deal is simple, but they are moving as fast as they can. Considering the project was stalled for seven years, it appears the floodgates have opened.

"We are moving along full speed on every front," Muss said, ticking off: "financing, construction documentation, final approvals in our new life with the city, and finalization of all of our partnership documentation."

Muss says the lack of Class A office space in Brooklyn, an almost complete pre-leasing and a new hotel and major office tenant have finally resulted in financing for the one million square-foot plus development.

In one aspect, he is completing a deal with the Marriott hotel chain that will enable it to come in and take over the hotel portion of the project.

"We have an agreement with them towards finalizing a takeover of an ownership position," he said. Hilton, the original hotel operator, he added, will "step-aside," in what he described as an "orderly, cordial procedure."

The 385-room seven-story hotel portion will have a large banquet, convention hall, and meeting room facilities, including a ballroom to accommodate 2,000 people that can be used for political fundraisers as easily as weddings, as well as a pool and health club that will be available for the office tenants.

The hotel, however, is only one piece of the puzzle.

The top 24-stories of the 31-story building will also contain 800,000 square feet of Class A office space, while the bottom will have "substantial" parking for over 1,000 cars. "It makes everything work," Muss said. "It's part of our financing package." Taking a cue from the latest amenities in suburban office parks, the building will also contain a day care center.

While the Brooklyn District Attorney's office was an early anchor tenant, Muss is also completing a deal with a large office space user he declined to identify. That investor/user will also come in with some equity and take up nearly the rest of the office space. With these deals in place, the as-yet-to-be-constructed building will be 90 percent full.

"We had always hoped we could market a lot of space and not commit to pre-leasing, but to finance you have to pre-lease," he explained. "It still leaves us a few floors to play with. I wish I had more. There is an absolute pressure for first class office space."

Glenn Markman, senior managing director of Grubb & Ellis New York, who represents the only two Class A spaces currently available in the area, said the completion of the Renaissance Plaza would be an incredible renewal for the borough. "Certainly, new construction is needed and the hotel should be a major success," he said.

The building will contain many large windows and will be one of the tallest buildings in Brooklyn. Rents are expected to be in the high 20s, and as Muss notes, "are a lot cheaper than one would have to charge it one were building a new building."

The Industrial and Commercial Incentive Program (ICIP), along with other area incentives, will also be increased to offset the plan to revitalize Downtown Manhattan.

"What we have that is unique versus any existing building," Muss insisted, "is that when you are building a new building, you have huge savings in tenant improvements and that can be worth anywhere from $5 to $7 a foot." With a brand new canvas, there are no asbestos or upgrade issues.

The financing is complex, he noted, and involves a combination of equity that was used to obtain a conventional lender/construction/mini-perm loan.

It was only in June that Borough President Howard Golden convinced city officials to give Muss another year to obtain the loans. If he does not have them in place by June 1, 1996, Muss would forfeit $1.5 million and would have to walk away from the property.

"It took a lot of giving, a lot of pushing, a lot of maneuvering, and a lot of relinquishing of interest, which I was delighted to do," Muss said. "Frankly, things have not eased up in financing, but there is not much competition anymore so the need for new product is strengthening."

As to the necessity for new Class A space in Brooklyn, Muss said, "If I had any doubts about it, they have been quelled long ago. I'm a believer in Downtown office space, and I'm a believer in Downtown Brooklyn," he said. "There was never any over-production in the boroughs."

The site of the project lies between Adams and Jay Street, between the State Supreme Court building and MetroTech Center. "It's the linchpin between the two," said Muss. "It's a fabulous area."

The charming shops and restaurants of Montague Street are an easy lunchtime or dinner destination, as is the Brooklyn Promenade and its breezy walkway and Manhattan views.

Muss is aiming to get into the ground by the end of the year. "No one is looking to delay this," he added.