Kings County reigned supreme in July as lenders funneled billions into real estate projects in outer boroughs.
The month’s 10 biggest loans totaled $1.8 billion, more than five times the June total and about twice as much as last July, closely mirroring a similar rebound in Manhattan.
Brooklyn captured seven of the month’s 10 biggest business loans, while Queens had the other three. A few big projects in the Gowanus rezoning received construction loans, while Carlyle leveraged its buying spree in Brooklyn and Queens in the biggest outside borough financing deal of the month.
Below are more details on each of them:
Smart Carlyle | Brooklyn and Queens | $500 million
The Carlyle Group has secured up to $500 million from Invesco, secured by 39 small multi-family properties, which the private equity giant recently purchased in Brooklyn and Queens. The company was looking for a specific building tax class called 2A/2B, which limits property tax increases to no more than 8% per year. Because the properties have no more than 10 units and tend to be mostly open market, they avoid many of the restrictions placed on landlords by the state’s 2019 Rent Stabilization Act.
Leser is over | Brooklyn | $202 million
Abe Leser’s Leser Group has landed $201.9 million from UMB Bank to construct a 325,000 square foot office and retail building at 2440 Fulton Street, also addressed at 1495 Herkimer Street, Ocean Hill , Brooklyn. Construction loans for the project total $166 million and $35 million was used to refinance the senior loan. The New York City Department of Social Services will anchor the tenancy in the building, occupying more than 200,000 square feet. Retail will represent 25,000 square feet. Leser bought the development site in 2015 for $33 million. The Metropolitan Commercial Bank was the previous lender.
Big in Jamaica | Queens | $196 million
BRP Companies has secured $196 million from AIG Investments to construct a 614-unit apartment building at 90-02 168th Street in Jamaica, Queens. Scheduled for completion in 2025, the 716,000 square foot project has total funding of $378 million and will rise near the Jamaica Long Island Rail Road station. A shopping corridor on Jamaica Avenue, where Jeff Sutton’s Wharton Properties has retail businesses, is nearby. BRP bought the development site in 2018 for $20.5 million.
Gowanus a go-go | Brooklyn | $176 million
Domain Companies has received $176 million from Bank OZK to build a 360-unit residential complex with two towers at 420 Carroll Street in the recently rezoned area of Gowanus. Other partners in the project include Vorea Group, Silverstein Properties and subsidiaries of Cantor Fitzgerald. A quarter of the units in the buildings will be reserved as affordable. Domain bought the development site from Property Markets Group in 2018 for $47.5 million.
The value of your guilders | Queens | $170 million
Kevin Chisholm’s 60 guilders used $170 million from Apollo Global Management to buy 33-00 Northern Boulevard, a 550,000 square foot office building in Long Island City, which Vornado sold for $173 million. Government agencies, including the Metropolitan Transportation Authority and the city’s Human Resources Administration, are nearly full tenants of the building.
Special KKR | Brooklyn | $132 million
Private equity investor KKR has received $131.5 million from State Street Bank and Trust Company to buy a 365-unit rental tower in downtown Brooklyn, in partnership with Dalan Management, for $190 million. dollars. The 35-story building at 80 DeKalb Avenue is 80% off the market rate. A one-bed, one-bath unit currently costs $4,430 per month, after concessions.
London Call | Brooklyn | $126 million
London-based Quadrum Global has secured $126 million from Madison Realty Capital and Axos Bank to build a 171-unit condominium building at 29 Huron Street, also known as 161 West Street, in Greenpoint. The 13-story, 178,000 square foot project was designed by Morris Adjmi Architects. Quadrum bought the site, consisting of a vacant warehouse, in 2014 for $45.5 million in a 1031 exchange, using proceeds from the sale of B Ocean Resort in Fort Lauderdale, Florida. Serhant will market the condos, with sales expected to begin this summer.
Corner the market | Queens | $122 million
TF Cornerstone received refinance loans totaling $121.9 million from PNC Bank for 4540 Center Boulevard, a 345-unit apartment building built in 2012 overlooking the East River in Hunters Point, Queens. The funds repay loans from Queens West Development Corporation, a subsidiary of the New York State Economic Development Corporation, which is responsible for remediating waterfront industrial properties in Long Island City. A studio currently costs $3,080 and a bedroom for $3,625 and $4,075, according to StreetEasy.
Gowanus a go-go II | Brooklyn | $107 million
Tavros Holdings and Charney Companies have received $107 million from Pacific Western Bank to construct a 214-unit apartment building at 577 Union Street in Gowanus. After purchasing the air rights to a nearby single-family lot, developers filed plans to construct a 229,000 square foot nine-story building. Tavros and Charney bought the site in 2019 for $32.7 million. A quarter of the building’s units will be reserved as affordable under the city’s mandatory inclusive housing policy.
O Canada | Brooklyn | $98 million
Brookfield Properties received $98 million from Royal Bank of Canada, including $35 million in new debt, to refinance its leasehold position at 100 Myrtle Avenue. The 600,000 square foot office building is part of downtown Brooklyn’s multi-million square foot pedestrian business district, Brooklyn Commons, formerly known as the MetroTech Center. Brookfield refinanced One MetroTech Center, a 950,000 square foot office building at 351 Jay Street, earlier this year with $150 million from Well Fargo.