(Nelligan White Architects, Emporis, LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Totaling $1.35 billion, the three largest home loans issued in the outer boroughs in January came from public-private initiatives to repair public housing in Brooklyn. The New York City Housing Authority secured federal funds for the repairs through PACT, a program that allows private companies to manage NYCHA buildings while capping tenant rents at 30% of household income.
In the private capital market, Hackman Capital Partners and Square Mile Capital secured refinancing for their purchase of Kaufman Astoria Studios and Brookfield refinanced one of its Blue Slip towers in Greenpoint Landing.
Combined, the ten largest loans from the outer boroughs in January totaled $2.85 billion. Below are more details on each of them:
1. Williamsburg Homes | $472 million
A subsidiary of MDG Design & Construction and Wavecrest Management has received approximately $472 million in loan proceeds from city officials and JPMorgan Chase and to upgrade homes in NYCHA-owned Williamsburg, a 20-building site with 1,621 residential apartments in Brooklyn, formerly known as Ten Eyck Houses. The buildings once displayed murals, since moved to the Brooklyn Museum, which were commissioned by the Works Progress Administration, a Depression-era infrastructure agency created as part of the New Deal. JPMorgan will hold two-thirds of the construction loans, according to public records.
2. Linden and Penn-Wortman Houses | $440 million
A consortium of companies including L+M Development Partners, Douglaston, Dantes and SMJ has received a $440 million loan from city agencies and Wells Fargo to upgrade NYCHA’s Linden Houses and Penn-Wortman properties in East New York. Some 22 buildings and 1,922 apartments will be upgraded with the funding. Wells Fargo will hold two-thirds of the construction loans.
3. Boulevard, Belmont-Sutter, Fiorentino Plaza | $436 million
A company controlled by public and private entities, including Hudson Companies, Property Resources Corporation and Duvernay + Brooks, received a $436 million loan to redevelop three public complexes with 1,673 apartments in 29 buildings in East New York. NYCHA, New York City Housing Development Corporation and JPMorgan Chase provided the funds.
4. Follow the money | $340 million
Hackman Capital Partners and Square Mile Capital received $340 million in loans, including $252 million in new debt, from Deutsche Bank to refinance Kaufman Astoria Studios, the film and television studio the joint venture bought last year. latest in a deal valued at $600 million. The studio originally housed Paramount Pictures before the company moved to California in the 1930s.
5. Blue Suede Briefs | $293 million
Brookfield Properties refinanced debt at 41 Blue Slip (aka “Two Blue Slip”) in Greenpoint Landing with loan proceeds of $292.5 million, including $75.2 million in new debt, from a subsidiary of the Berkshire group. The 30-story rental tower sits next to Brookfield’s 37 Blue Slip (aka “One Blue Slip”). The loan replaces debt issued by a quartet of international lenders, including the Industrial and Commercial Bank of China and Scotiabank.
6. In area | $220 million
Vorea Group, Domain Companies and L+M Development Partners have secured $220 million in construction loans from Wells Fargo for a 500-unit residential property at 2-33 50th Avenue in Hunters Point, Queens. The trio bought the site, which sits in an opportunity zone, last September for $88.5 million.
7. Maspeth Complex | $175 million
Madison Realty Capital secured $141.7 million in new construction loans from Apollo Global Management, along with a $33.3 million refinancing of existing debt, for its mixed-use development at 69-02 Queens Boulevard and at 46-15 69th Street in Maspeth, Queens. The two-building complex will include 500 apartments, including 150 affordable units, and a new school building for 476 students, the Sunnyside Post reported. The refinancing replaces the debt held by ConnectOne Bank.
8. Townhouses in tow | $175 million
The Carlyle Group has secured up to $175 million in loan proceeds, including $20.2 million in new funds, from Invesco to refinance a 12-building residential portfolio spanning 49,000 square feet, consisting primarily of multi-family townhouses in Brooklyn.
9. Affordable financing | $163 million
Phipps Houses secured an approximately $163 million loan from the New York City Housing Development Corporation to build 279 residential units at 2080 Boston Road in West Farms, Bronx. The units will be part of the Lambert Houses, an affordable housing project that is expected to eventually include 1,665 residential units, according to the Bronx Times.
10. Surfing | $139 million
BFC Partners received approximately $139 million in public loan to build a 10-story residential building with 376 affordable units and 20,000 square feet of community and retail space at 1607 Surf Avenue in Coney Island. The funds represent the second phase of the project, with the first phase of 400 units and five retail spaces completed at 2926 West 19th Street.