JV Obtains $144M in Financing for Brooklyn Community
- Dec 02, 2016
New York—A joint venture between Jonathan Rose Cos. and BedRock Real Estate Partners closed on $144 million of debt and equity financing for The Pierrepont, a new 86-unit mixed-income apartment building currently under construction. The two 19-story towers will face Pierrepont and Montague Streets in the Brooklyn Heights section of Brooklyn.
Santander Bank is providing the construction financing, with JD Capital, a public asset investment and advisory firm based in China, providing additional equity. JD Capital is being advised by Dallas-based L&B Realty Advisors, which has $8.5 billion in assets under management.
The project will include a number of relatively large, family-oriented units; a floor of dedicated amenities; and about 6,000 square feet of ground floor retail with street frontage on both Montague and Pierrepont. Santander is leasing the Montague side of the project for a bank branch.
Construction of The Pierrepont is expected to be completed in 24 months. The building will include sustainable features that exceed Enterprise Green Communities certification requirements.
Brooklyn is still a hot apartment market, but rents have quit accelerating in some places, and in fact have dropped in October in certain submarkets, according to MNS. That includes Brooklyn Heights, were month-over-month studio rents decreased by 6.7 percent, one-bedroom rents decreased by 1.4 percent, and two-bedroom rents have decreased by 1.7 percent. Compared with a year ago, rents have also decreased, by an average of 1.9 percent in Brooklyn Heights.