Two Trees Management has signed a preliminary term sheet to buy the sprawling Domino Sugar factory site on the Williamsburg waterfront for more than $160 million from CPC Resources Inc. and its partner, The Katan Group. Despite recent efforts to save the cash-strapped project by making the project's lender, Pacific Coast Capital Partners, an equity partner, and looking for a deep-pocketed developer to inject additional cash into the project, CPC wants to get out of the project . "The market told us that now is the time to sell the property outright," said Rafael Cestero, chief executive of CPC, adding that since taking over the firm in January, his goal has been to rebuild the troubled CPC as an affordable housing lender and to make sure that the Domino site gets developed. "Two Trees understands waterfront development, is well-capitalized and is the best chance for this site to get developed into the mixed-income, mixed-use community it was intended to be." Mr. Cestero said within the past six weeks CPC had received about a half a dozen offers to buy the site. A spokesman for Two Trees declined to comment. Two Trees is responsible for transforming the once-gritty waterfront Brooklyn neighborhood of Dumbo into a thriving community. CPC has presented the offer to its partner, The Katan Group, which had sued CPC for mismanaging the project and asked the court to block CPC's earlier efforts to salvage the project. Last month, the court ruled against Katan, but since then, Katan has appealed the ruling and filed other suits against CPC. A spokesman for the Katan Group did not immediately comment. Mr. Cestero said under its joint venture agreement with the Katan Group, while CPC needs to consult and notify Katan of the sale, Katan does not need to agree to the sale for the deal with Two Trees to proceed. Five years ago, Katan and CPC partnered to buy the 11.2-acre sugar-factory site for $55 million and convert it into a $2 billion, mixed-use development that would feature 2,200 apartments, 30% of them affordable, and four acres of open space. Those plans also called for restoration of the 100-year-old industrial landmark's famous sign, which looms over the East River. They faced many difficulties, including a long and costly effort to have the site rezoned to residential. The new owner would be required to follow those zoning guidelines, Mr. Cestero said. If the sale goes through, the $160 million deal would be enough to cover the outstanding mortgage and interest of $125 million on the property. Mr. Cestero says it would also provide a return on capital plus a little bit more to the equity partners in the project. If all goes as planned, the sale could be finalized by the end of next week, he said. "Any money we get or make on Domino will be important to rebuilding CPC into the lending and financing platform it has been for the city and state for the last 38 years," Mr. Cestero said.