JV Lands $176M Recap for Brooklyn Project
The financing will be used to transform One Boerum Place from for-sale condos to rentals.
Avery Hall Investments and its co-developers, Aria Development and Allegra Holdings, have secured a nearly $176.5 million recapitalization that will help convert its One Boerum Place project into a rental community.
JLL arranged the senior and mezzanine financing that was provided by QuadReal Property Group and an affiliate of Eyal Ofer’s Global Holdings Management Group. Ian Lester and David Berlyne from Lester Bleckner & Shaw LLP represented the senior and mezzanine borrower for the transaction.
Avi Fisher, founding partner at Avery Hall, said in prepared remarks that the financing package gives the developers the flexibility to pivot One Boerum Place from a for-sale condo project to a rental property.
JLL’s Christopher Peck, Peter Rotchford and Alex Staikos were part of the Capital Markets debt advisory team that represented the developers for the financing package. The trio from JLL originally arranged $165 million in construction financing for the project when it was still a condo project.
One Boerum Place has since shifted to a rental community due to the decline of the condo market in New York City and the market impact from the COVID-19 pandemic, Fisher said in a Bloomberg report in May.
MORE THAN HALFWAY LEASED UP
Steps away from Brooklyn Borough Hall, One Boerum Place will offer 138 rental units in one-, two-, three- and four-bedroom floorplans that range in size from 700 to 1,800 square feet. The majority of the units will be three- and four-bedroom units with outdoor space, while 42 of the units will be affordable, an Avery Hall spokesperson told Multi-Housing News.
The community is also being built with a pool, fitness center, entertainment lounge, children’s playroom, pet spa, sauna, rooftop equipped with a fireplace, automated garage with 47 spaces and residential storage. One Boerum Place will also have approximately 21,669 square feet of ground-floor retail that offers frontage on Boerum Place and Fulton Street.
The developers broke ground on One Boerum Place in February 2019 and started pre-leasing in May. An Avery Hall spokesperson told MHN that the community is currently more than 70 percent leased, including the largest penthouse unit that was leased at $27,000 per month. The spokesperson also told MHN that residents are currently occupying the completed units, with construction expected to wrap by the end of the year.