Los Angeles-based real estate investment firm Canyon Capital Realty Advisors originated a $120 million construction loan for the development of a 12-story apartment complex at 365 Bond Street in Brooklyn’s Gowanus area, Mortgage Observer has first learned.
The 30-month senior loan, provided to an affiliate of The Lightstone Group, features a fixed-rate and extension options, according to Meridian Capital Group, which brokered the debt. The project also benefits from a 25-year tax abatement, the lender and broker said.
The construction loan will fund phase one of a planned two-phase development on one square block between 1st and 2nd Streets in Carroll Gardens. The completed multifamily property will contain 429 apartment units, including 86 units of affordable housing, as the newest rental building in the area.
The property will also house a garden courtyard, roof decks, a fitness facility, a theater room and a waterfront promenade park on the Gowanus Canal.
“Canyon has a long history of investing in Brooklyn and its emerging neighborhoods, and we have been tracking the Gowanus neighborhood for some time now,” Canyon Realty Director Charlie Rose said in a written statement first sent to MO. “We are pleased to have the opportunity to finance this transformational project, which will add several hundred mixed-income high-quality housing units to the neighborhood.”
Meridian Senior Managing Director Drew Anderman negotiated the transaction on behalf of Lightstone.
“By working closely with the lender and development team at The Lightstone Group, Meridian was able to successfully design and implement a financing package that allows the client to build this class-A apartment complex in one of the most exciting and upcoming areas of Brooklyn,” said Mr. Anderman.