Pacific Park Resi Tower Nabs $73M Financing from M&T
By Matt Grossman May 28, 2019 10:59 am
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TF Cornerstone has picked up a $73 million loan from M&T Bank (MTB) to kickstart construction at a Brooklyn site where the company plans to build a sizable multifamily project as part of the Pacific Park master plan, according to property records.
The debt deal comes three months after the New York City-based firm, led by the Elghanayan family, paid $143 million to buy two adjacent parcels at 595 and 615 Dean Street in the Prospect Heights neighborhood. TFC bought the land from Greenland Forest City Partners, a joint venture between Greenland Group and Forest City New York, and plans to build 800 apartments split between two towers, in a development that will also include retail, parking and 72,000 square feet of open space.
The transaction structure saw TFC take over two development leases that were drawn up between Greenland Forest City and the Empire State Development Corporation. When construction is finished, the leases will convert to equity in the site for TFC.
The endeavor is part of the ambitious Pacific Park project, ESDC’s initiative to build more than a dozen skyscrapers on a 22-acre parcel that will partially cover a Long Island Rail Road yard. The multi-decade project should eventually bring about 6,500 new apartments to the centrally located Brooklyn district, where Greenland Forest City is also at work on a 500-foot tower at 18 Sixth Avenue. But delays have pushed the deadline for the overall project’s final completion as late as 2035.
Representatives for TFC and M&T Bank didn’t immediately respond to inquiries.
