Blackstone Leads $720M Refinance for Industry City
By Cathy Cunningham December 19, 2019 10:50 am
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The ownership group behind Industry City has sealed a $720 million refinance for the Sunset Park mega-project, Commercial Observer has learned.
Blackstone led the financing, with Bank of China, Deutsche Bank and SL Green Realty Corp. also in the lending group. The debt included a mezzanine component, sources said.
The new financing replaces and upsizes the $647 million loan provided on the property in December 2017 by Bank of China and SL Green (SLG).
As with previous rounds of financings on the behemoth development, Iron Hound Management negotiated the debt on the 16-building commercial complex, sources said. Officials at Iron Hound did not immediately return a request for comment.
The 6-million-square-foot, 35-acre development, on Sunset Park’s waterfront in Brooklyn, is owned by Jamestown Properties and Belvedere Capital own the along with Angelo Gordon & Co., Ruby Schron’s Cammeby’s International and Abraham Fruchthandler’s FBE Limited. Representatives for the property’s sponsorship declined to comment.
First established as an intermodal manufacturing, warehousing and distribution center in the 1890s and known as Bush Terminal, the facility fell into disuse in the middle of the twentieth century. By the 1960s, most of Industry City’s manufacturers – including Topps baseball card company – shuttered their doors or moved out. In 2013, the current ownership group stepped into redevelop the massive complex into what is now the thriving Industry City.
The property has seen a lot of tenant—and potential tenant—activity this year.
In July, Crain’s New York Business reported that Amazon was eyeing Industry City as the site of its next logistics facility, in a deal that would see the e-commerce giant taking a whopping 1 million square feet. Earlier in the year, E-bike and hoverboard manufacturer Jetson inked a lease for 12,500 square feet at the development while Essence Communication signed a 10-year lease for 29,000 square feet at 34 35th Street.
Additionally, plans for a $1 billion expansion plan is currently underway at Industry City, with sponsorship pushing for a rezoning that would allow additional retail, academic space and offices at the site, The Real Deal reported. A City Council vote will take place in the spring.
It’s been a busy year-end for Blackstone. Last month, the lender provided a $724.2 million refi for Cove Property Group‘s Hudson Commons, its trophy office redevelopment at 441 Ninth Avenue in Hudson Yards, as first reported by Commercial Observer.
Officials at Blackstone, Deutsche Bank and Bank of China declined to comment. Officials at SL Green were not immediately available for comment.
