Berkadia Closes $82.4 Million in Brooklyn Loans
Berkadia Commercial Mortgage, has closed a deal to provide $33 million in financing for a new phase of the luxury multifamily development Driggs, in the Williamsburg neighborhood of Brooklyn. It is one of four loans for a total value of $82.4 million that Berkadia has recently closed in the borough.
Berkadia’s bridge loan program is providing the developer of Driggs complex, HSD Construction, with a 12-month, floating rate loan. It will be used to complete the second phase of the development on Ninth and Tenth Streets, between Driggs Avenue and Roebling Street, with the construction of two seven-story buildings.
The properties, 225 North Ninth Street and 220 North Tenth Street, are currently 95 percent and 80 percent complete and are scheduled to open in September and November, respectively. They will have a total of 98 units.
In November 2011, the developer closed a $28 million in interim construction with Berkadia, to finance the first phase of the project for a 113-unit building at 205 Ninth North Street. Then, in June 2012, Berkadia secured a $50 million permanent, 10-year Fannie Mae loan upon the project’s completion.
The buildings offer studios, one and two bedrooms and features doorman and concierge service, a fitness center, common lounge, cinema room and underground parking.
“For this particular deal, we were able to utilize our in-house bridge loan program to meet the borrower’s needs,” Berkadia Vice President Thomas Toland, who worked on the deal with Senior Vice President Stewart Campbell, said in a prepared statement. “Our extensive knowledge of the Brooklyn area and capabilities as a one-stop commercial mortgage lender—where we can both stabilize and permanently finance a property—were both very attractive qualities to the borrower.”
Also in Williamsburg, Berkadia’s Messrs. Campbell and Toland have recently worked with sponsor Keap Street Holdings to originate through Freddie Mac a 10-year, fixed-rate $23 million loan to refinance a 46-unit apartment complex at 65 Ainslie Street.
Elsewhere in Brooklyn, the team has closed a $20.1 million loan through Fannie Mae for properties at 182 15th Street and 169 16th Street in Park Slope and a $6.3 million loan through Freddie Mac for a 22-unit building 506 Washington Avenue in Clinton Hill. These 10-year, fixed-rate loans were used to refinance existing mortgages.
“We have worked on a significant number of deals in Brooklyn over the last 18 months,” said Mr. Toland. “The borough is a vibrant component of the overall New York City multifamily and commercial market, and we expect the uptick in activity to continue.”