Mack Real Estate Provides $125M Refi for DoBro’s 1 Flatbush Avenue
The Downtown Brooklyn mixed-use development is nearing completion
Meadow Partners and Slate Property Group have refinanced their mixed-use development at 1 Flatbush Avenue in Downtown Brooklyn with a $125 million loan from Mack Real Estate Credit Strategies, Commercial Observer has learned.
The financing closed last week and replaces roughly $110 million in debt from 2015; an $80 million senior loan provided by Wells Fargo and a $30 million mezzanine loan from Winter Properties, The Real Deal reported at the time.
Situated on the intersection of Flatbush Avenue and Fulton Street, the almost-completed 170,000-square-foot project will include 183 multifamily rental units—of which 37 are affordable—and 25,000 square feet of retail space on the ground and second floors.
The 19-story property is expected to receive a temporary certificate of occupancy in the next few weeks, Slate Property Group Principal David Schwartz told CO, after which lease-up of the apartments and retail will ensue.
Schwartz said there has been significant interest in the property’s retail portion, and the firm is currently in negotiations with prospective tenants interested in the prime location.
“One Flatbush Avenue sits at the intersection of the best areas in Brooklyn,” Schwartz said. “Fort Greene and Boerum Hill are right next to it and Park Slope and Brooklyn Heights are nearby. It’s a great area that’s seen dramatic growth recently, there’s so much activity.”
Amenities at the Hill West Architects-designed building will include a fitness center, a yoga studio, a game room, outdoor entertainment space and a rooftop deck.
Slate Property Group and Meadow Partners acquired the property in April 2014, paying $59 million for the then-retail property, TRD reported. A year later, they purchased the adjacent development site at 570 Fulton Street.
Schwartz said that Slate is constantly eyeing other potential acquisition and development opportunities in the area. “We’d love to have another asset there,” he said.
A short distance away at 85 Flatbush Avenue Extension, Mack also refinanced The Chetrit Group’s Tillary Hotel and luxury rental property 60 Duffield with an $83 million loan in April.
The transaction marks the developers’ first financing with Mack but, “We were excited to work with them, and looking forward to doing more deals with them,” Schwartz said.
Official at Meadow Partners couldn’t immediately be reached. Officials at Mack Real Estate declined to comment.