Brooklyn Luxury Community Lands $75M Refi
- Mar 29, 2019
Cushman & Wakefield has arranged a $75 million refinancing for The Lane at Boerum Place, a recently built 108-unit luxury residential tower in downtown Brooklyn. The firm acted as the exclusive advisor to developers Quinlan Development Group and Lonicera Partners in procuring the financing package for the 21-story tower, which spans 133,387 square feet.
Executive Managing Director Gideon Gil led the team at Cushman & Wakefield, which also included Associate Noble Carpenter III and Analyst Zachary Kraft. The refinancing was provided by TD Bank.
The deal followed a competitive marketing process. “This transaction represented a compelling financing opportunity for lenders due to the strong, local sponsorship and the Class A nature of the property,” Gil commented in a prepared statement. “This one-of-a-kind asset represents the apex of multifamily product in Brooklyn, with a location that is truly unbeatable.”
Located at 415 Red Hook Lane, the luxury tower on the edge of Brooklyn Heights was completed in 2017. The residential units are currently 100 percent leased, according to C&W, and range in size from studios to three-bedroom homes. Workout gym Rumble Boxing occupies half of the property’s retail space.
Brooklyn rents rise in face of supply surge
Brooklyn is undergoing a multifamily building boom, adding 4,651 new units in 2018, according to Yardi Matrix data. Despite the supply surge, which marks a new cycle high for the borough, demand continues to grow, particularly in the upscale segment.
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. Projects targeting high-income residents make up roughly 85 percent of new developments underway in the borough.
Quinlan Development Group currently owns 21 properties, including 1,000 multifamily units. The Lane at Boerum Place marks the group’s fourth project in Brooklyn. The company previously worked with Lonicera Partners to build 153 Remsen, a Class A luxury apartment project in Brooklyn Heights completed in 2017. In July of last year, the partners landed $52.5 million to refinance the original construction loan on the 60-unit community.