Naftali JV Obtains $525M for Brooklyn Condo Project
JP Morgan and GoldenTree Asset Management provided the funds.
Naftali Group and Access Industries have secured a $525 million financing package to build Williamsburg Wharf’s Phase Two, which will deliver 363 condominium units in Brooklyn, N.Y., in 2028. JP Morgan and GoldenTree Asset Management provided the funds in a deal arranged by Walker & Dunlop.
The venture will use the floating-rate, interest-only debt to refinance an existing acquisition loan, cover closing costs and bankroll the condo construction.
This second phase will add two high-rises along the East River’s bank, next to Williamsburg Wharf’s first phase, which debuted recently and delivered more than 500 multifamily units and 89 condos across three separate towering structures. Bank OZK funded that development phase with a $385 million construction loan in 2022 and two notes amounting to $238 million last year.
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The Phase Two towers will be among the largest such buildings in Brooklyn, to rise 415 and 460 feet at 80 Wharf Way. The entire Wharf community is on track to encompass 1.2 million square feet of residential, retail and cultural space across its five buildings at full build-out.
The site is in the highest-intensity waterfront zoning area, about 1 mile north of the Williamsburg Bridge and 4 miles away from Lower Manhattan.
Walker & Dunlop Senior Managing Directors Keith Kurland, Aaron Appel, Dustin Stolly, Jonathan Schwartz and Adam Schwartz, together with Managing Directors Sean Reimer and Ari Hirt and Analyst Stanley Cayre, represented Naftali and Access in the debt negotiations.
Brooklyn’s condo market takes off, trailing Manhattan
Brooklyn condo sales were up 44 percent year-over-year in November, with 229 new contracts signed that month, according to a Douglas Elliman report. With many condominium projects wrapping up, 250 listings hit the market during the previous month, marking a 38.9 percent growth compared to 2024.
The borough is swiftly closing in on Manhattan, which witnessed 328 sales in November, up by just 3.1 percent compared to 2024, the report also shows. Yet, Manhattan developers added substantially more condos to the market—456 new listings in November—which accounted for a 12.6 percent year-over-year growth.
This isn’t Naftali’s first condo deal in the Big Apple this year. In August, the firm completed the $810 million acquisition of a 208-unit asset in Manhattan, with plans to demolish and replace it with a condominium property. The same banking duo of JP Morgan and GoldenTree funded that purchase as well.
