Square Mile Originates $115M Construction Loan for Brooklyn Multifamily Property
Hampshire Properties has scored a $115 million construction loan from Square Mile Capital Management for 1277 East 14th Street, an eight-story, 265,000- square-foot multifamily property located in the Midwood neighborhood of Brooklyn, Commercial Observer can first report.
Meridian Capital Group’s Morris Betesh, Justin Boruchov and Daniel Belecen negotiated the debt, which acts as a cash-out refinance to fund the completion of the 302-unit property.
“This transaction gives us the opportunity to provide financing at a secure basis on a high-quality, well-located multifamily asset and establish a lending relationship with the premier team at Hampshire Properties,” Square Mile Vice President Sean Reimer said in prepared remarks. “Between the borrowers’ track record, the building’s desirable location in the established Midwood neighborhood, and the strong multifamily market fundamentals in Brooklyn, we are confident in ownership’s ability to execute its business plan.”
The property occupies the former site of the Shulamith School for Girls, and has frontage along East 14th Street, Chestnut Avenue, and Locust Avenue. When construction is complete, the luxury building will include one-, two-, and three-bedroom units, 150 parking spaces, a fitness center, a game room, a landscaped inner courtyard and a rooftop with views of the Manhattan skyline.
“Refinancing a loan during construction is an extremely challenging task, but Hampshire Properties is a premier multifamily owner and developer, and we were able to leverage their decades of expertise in multifamily management in the Midwood area to benefit the terms of the deal,” Betesh said in prepared remarks. “Midwood is one of Brooklyn’s best kept secrets, with strong demographics, convenient transportation and upscale retail options. A full-service luxury building with first-rate amenities and a private courtyard is new to this neighborhood, but thanks to the area’s rapidly evolving landscape, we are certain it will be a resounding success.”
Square Mile’s other recent development loans include a $260 million acquisition and construction loan for Delancey Street Associates’ Essex Crossing mixed-use project at 202 Broome Street and a $150 million construction loan for Tavros Development Partners’ The Dime mixed-use property in South Williamsburg.
Officials at Hampshire Properties could not immediately be reached for comment.