Investors Bank has provided Hudson Companies with a $30 million permanent loan to refinance its construction loan at 22 Caton Place in the Kensington/Windsor Terrace area of Brooklyn, Commercial Observer has learned.
The loan, which replaces a $19 million construction loan from Wells Fargo, closed on Tuesday, Hudson Principal Alison Novak said. Eastern Union Funding’s David Metzger and Nate Hyman negotiated the deal. Metzger said that the deal includes only a year of interest and was done in the knick of time as the Wells Fargo loan was due to mature tomorrow.
“It was an existing relationship with Investors Bank,” Metzger said. “Investors Bank loves Hudson Companies.” And, the bank loves 22 Caton Place in particular because of its LEED Gold status and its plethora of amenities which include vegetable gardens on the roof and an urban farmer who provides advice and support, as well as a concierge, a pet grooming room, a gym and a yoga studio, a lounge, a children’s playroom, a boule court, a landscaped courtyard and a roof terrace with barbecue.
The building at 22 Caton Place, which is two blocks from Prospect Park, is a 73-unit market-rate rental with below-grade parking. It was completed last June.
Leasing commenced last summer and one-bedroom apartments range from $2,500 to $3,000 per month, Novak said. The property is fully leased, Novak said, but for a couple of relets on the market.
David Kramer, the president of Hudson, previously told CO: “We took a huge risk building an apartment building there hoping to get one-bedroom rents of $2,200 and worrying that that was a leap of faith. The good news is it’s worked out well. The bad news is it shows how expensive Brooklyn is getting if one-bedrooms at Caton Place…are $2,600 to $2,700. That means for Hudson that our next projects are going to be that much more challenging to find the right location.”