$27M Financing Earmarked for Brooklyn Development
- Apr 23, 2019
Madison Realty Capital has provided a $27 million first mortgage loan to Bruman Realty for the development of a Brooklyn, N.Y.-based 68-unit mixed-use residential building and the rehabilitation of an adjacent two-story community facility. Located at 93 Linden St., and 395 Evergreen Ave., respectively, the two properties are situated in the borough’s rising Bushwick neighborhood.
“Our previous work with the borrower in the neighborhood gave us the comfort needed to proceed with this financing package, as well as the confidence that they will successfully deliver yet another quality asset,” Josh Zegen, MRC’s co-founder & managing principal, said. “In addition, we have deep expertise and confidence in the Bushwick market, which is experiencing significant development activity as residential tenants and commercial users alike are being priced out of neighboring areas in Brooklyn.”
Bruman Realty, which acquired the property in 2016, has already completed approximately 35 percent of the project, with a planned completion date of early 2020. Previously, Madison Realty Capital provided Bruman Realty with a $90 million financing package.
Once completed, the new building will offer studios, one- and two-bedroom apartments, with 30 percent of units allocated for affordable housing.
The immediate neighborhood includes the Williamsburg Bridge, the Brooklyn-Queens Expressway and Myrtle Avenue, and the property offers great convenience to the J, Z, M and L subway lines.
A Rising Market
Brooklyn, thanks in great part to its proximity to Manhattan, is in the midst of a multifamily building boom, adding 4,651 new units last year, according to recent data from Yardi Matrix.
However, even with the increase in supply, which is a new highpoint for the borough, there’s still great demand for more housing.
Projects targeting high-income residents make up roughly 85 percent of new developments underway in the borough. According to the report, rents in the Lifestyle segment—residents who are sufficiently wealthy to own but have chosen to rent—rose 3.4 percent year-over-year through January, compared to 2.4 percent for overall rents in Brooklyn.
Earlier this month, Madison Realty Capital facilitated a $32 million loan to New York City developer Hello Living to recapitalize its 55-unit luxury rental property at 271 Lenox Road in Brooklyn.