MRC, Bluestone Lend $32M to Recapitalize Brooklyn Mixed-Use Rental

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Madison Realty Capital and Bluestone Group have combined to provide a $32 million package to recapitalize Hello Lenox, a 15-story luxury rental in Prospect Lefferts Gardens in Brooklyn, Commercial Observer can exclusively report.

SEE ALSO: MRC Lends $27M on Bruman Realty’s Resi Project in Bushwick

MRC provided a $28 million first mortgage, while Bluestone added a $4 million mezzanine piece—arranged by MRC—to top off the recap. The deal closed in under two weeks, sources familiar with the transaction told CO.

The timing of the deal’s closing was significant, allowing Eli Karp’s Hello Living to execute a time-of-essence buyout, sources said.

“Our flexibility, expertise and diligence allowed us to seamlessly arrange this complex transaction between multiple parties and tailor the financing package to the specific needs of this repeat borrower, all within an extremely tight time frame,” Josh Zegen, a co-founder and managing principal of MRC, said in a prepared statement. “This sponsor has already achieved great success at 271 Lenox, which was completed just last year and is nearly fully occupied.”

Hello Lenox is a 15-story, roughly 76,000-square-foot luxury rental—built in June 2018—comprising 55 units at 271 Lenox Road. The mixed-use asset includes 9,000 square feet of ground-floor commercial space and a 32-space parking garage.

Of the 55 units, 52 are two-bedroom residences and three are three-bedrooms. Each unit features a private elevator entrance and in-unit laundry machines. Building amenities include a fitness center, a roof deck, a parking garage and bicycle storage.

Last month, MRC refinanced another Hello Living property—its seven-story, 35-unit Hello Flatbush mixed-use rental property at 1357 Flatbush Avenue in Brooklyn’s Flatbush neighborhood.

A representative for Hello Living did not immediately respond to an inquiry.