INSIDE THE DEAL: LCOR Clinches Construction Financing for Rental Development

By Keat Foong, Executive EditorNew York, N.Y.—Who says construction financing is not obtainable? LCOR Inc. secured construction financing in this very difficult environment to finance the $69 million rental 34 Berry Street, which is located in the trendy neighborhood of Williamsburg, Brooklyn. The 142-unit development was able to secure financing for a number of reasons.  Much of the new construction in the neighborhood has been of condominiums. 34 Berry Street is one of the first ground-up apartment rental developments in the area. “The project provides necessary rental product in a sub-market with demonstrable demand,” says David A. Sigman, senior vice president and principal LCOR. “There is a big appetite for first-quality rental living space in this community.”Another reason the project was able to secure construction financing was that it was conservatively underwritten with 50 percent institutional equity. Also, “LCOR is a highly experienced developer and enjoys a long-term relationship with Bank of America, the construction lender,” Sigman says. The apartment building will stand at the corner of North 12th Street opposite McCarren Park, adjacent to Brooklyn Brewery. Williamsburg is within a quick ride by public transportation to Manhattan and “provides the full range of services that a resident could require,” adds Sigman. Amenities at the property will include a landscaped outdoor garden, a rooftop terrace and a rooftop lounge. A fitness facility and a business-center-oriented meeting room will be situated on the ground floor. The building will have on-site building management and a lobby attendant. The site, convenient to the L train’s Bedford Avenue station, will offer park and Manhattan views as well as on-site parking for 71 cars.LCOR, which partnered with a major pension fund on the development, had begun foundation work prior to June 30 2008. Consequently, the project gained a 421a tax abatement on an as-of-right basis under guidelines in effect at that time.