Citi, Rexmark Refi Spitzer’s 420 Kent Avenue With $388M Loan
By Cathy Cunningham November 5, 2020 10:32 pm
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Eliot Spitzer’s Spitzer Enterprises has sealed a $388 million refinance for its luxury waterfront property at 420 Kent Avenue in Williamsburg, according to sources familiar with the deal.
Citigroup (C) provided a $298 million 10-year, full-term, interest-only commercial mortgage-backed securities loan, while Rexmark provided a $90 million mezz loan. The transaction was arranged by Meridian Capital Group, according to sources. Meridian officials declined to comment.
The debt retires a $386 million loan provided by KKR (KKR) Real Estate Finance Trust in May 2019. Starwood (STWD) Property Trust provided $330 million in construction financing for the property’s development in 2016.
Designed by Eran Chen’s ODA New York, the South Williamsburg rental complex sits on a 2.8-acre East River waterfront site between South Eighth and South Ninth streets.
The 1.5 million-square-foot property comprises three multi-dimensional glass towers, and features 857 residences, 20,000 square feet of restaurant and retail space, 25,000 square feet of indoor amenities and 80,000 square feet of outdoor space.
Its retail component is occupied in part by Sea Wolf, a “surf shack” style restaurant with another location in Bushwick, Brooklyn.
As for the residential units, the development’s unique boxy design means that 80 percent of the apartments are corner units with three-sided sweeping views across the East River.
The towers comprise mostly studios and one-bedrooms that aim to cater to a “younger demographic with a little more hair than me,” Spitzer told CO in a February 2018 interview. Residents can enjoy state-of-the-art fitness facilities, a rooftop pool club, a library, a community garden, roof terraces and 400 feet of East River waterfront access.
Citi recently participated in another buzzed-about CMBS deal, the $165 million refinance for Silverstein Properties‘ 120 Wall Street.
And Citi and Rexmark also teamed up in December 2019 to refinance Extell Development’s luxury rental properties at 555 Tenth Avenue in the Hudson Yards neighborhood and 510 East 14th Street in the East Village, as previously reported by CO.
A spokesperson for Spitzer Enterprises declined to comment.
This article was updated to reflect the financing’s mezzanine component, provided by Rexmark.
