Steiner NYC’s $420M Brooklyn Recap
The company gained full ownership of the landmark 55-story tower.
Hub, a high-rise apartment building in Brooklyn, N.Y., has received a $420 million recapitalization arranged by Walker & Dunlop. The recap permitted Steiner NYC to buy out its equity partner, J.P. Morgan Asset Management.
The Walker & Dunlop team advised Steiner on the recapitalization and also arranged $62.5 million of preferred equity from Meadow Partners to support the purchase. The transaction provides Steiner full control of Hub, representing a strategic shift in ownership of the trophy building.
Upon the 2018 completion of the 55-story tower, Hub stood as the tallest building in Brooklyn. Developed by Steiner, the community features studio, one- and two-bedroom apartments offering panoramic views of New York Harbor, the skyline of Manhattan and multiple bridges.
The tower includes 40,000 square feet of amenities, including a 75-foot, year-round lap pool, landscaped sundeck, grilling cabanas and bike storage. Additional amenities are indoor and outdoor movie screens, programmed events held in Hub’s club lounge, a dog run, a playroom, a party room and a library.
Located at 333 Schermerhorn St., Hub is situated at the confluence of Brooklyn Heights, Fort Green, Park Slope and Boerum Hill. Among the tower’s selling points is the dozen subway lines accessible within a two-block radius of the building. The location provides residents with convenient access to Brooklyn’s lively arts and culture, as well as fine and casual dining, shopping and parks.
Walker & Dunlop earlier arranged Hub’s construction financing, JPMAM’s equity investment and institutional permanent financing in 2019. The Walker & Dunlop Capital Markets team was led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno and Christopher de Raet.
Brooklyn’s ups and downs
After years of unusually robust growth, the Brooklyn submarket more closely approximates trends seen in the multifamily industry nationwide, according to a recent Yardi Matrix report. While rates were positive for most of last year, they took a dip at the end. Overall occupancy for stabilized assets was down 30 basis points year-over-year to 98.6 percent in October. However, that is still well above the national rate.
Last month, another Brooklyn tower was delivered. The Welz, a partially affordable community rising 19 stories, came online at 159 Boerum St. The building features 162 units.
