Madison Realty Capital Lends $53M on Toby Moskovits’ Brooklyn Multifamily Development
By Cathy Cunningham January 15, 2021 4:15 pm
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Toby Moskovits’ Heritage Equity Partners has landed $53 million in construction financing for its 150-unit multifamily project in the Sunset Park neighborhood of Brooklyn, Commercial Observer can first report.
Madison Realty Capital provided the LIBOR-based, floating-rate loan in a transaction arranged by Meridian Capital Group’s Elliot Kunstlinger.
Located at 875 4th Avenue between 32nd and 33rd streets in Sunset Park, the project will eventually span 140,000 square feet and comprise a mix of studio, one-bedroom and two-bedroom units. Building amenities will include a gym, a yoga studio, a children’s playroom, outdoor space and a rooftop sun deck. Boasting waterfront views, the property is the only Class A residential building within walking distance to Industry City. The revitalization of the neighborhood has been a catalyst for a development boom, as well as an influx of tech and creative jobs in the area.
“Sunset Park is a growing, creative neighborhood, yet suffers from an undersupply of attractive housing options,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said. “We are pleased to build upon our relationship with Heritage Equity Partners to provide a flexible solution and execute this $53 million loan that will bring vital new housing options to this vibrant and growing neighborhood.”
As previously reported by CO, Heritage bought the two lots, which comprise the development site, for $19.8 million in 2018, with plans to build an eight-story rental building. A gas station previously occupied the site. The new development is expected to be completed by the second quarter of 2022. Heritage Development is the general contractor for the project.
“This area has seen major changes in the last few years, and there is not enough housing supply for all the new jobs created in this area,” Toby Moskovits, CEO of Heritage Equity Partners, said. “While there has been a large increase in companies moving into this area, there have not been enough residences built to accommodate the growth in population. There is a need for more housing in this area, for more rental apartments, and, especially, a need for new construction luxury units in this area.”
Happily, Heritage’s project will soon be providing both.
“We are providing both affordable and luxury units in the two buildings that we will be constructing on this site,” Moskovits said. “It is difficult to find sites in this area that allow for multifamily development, and we are happy to be part of the solution for the housing shortage in this area.”
Michael Lichtenstein, president of Heritage Equity Partners, said the project’s location at the intersection of three neighborhoods — Sunset Park, Industry City and South Slope — “makes this location very attractive for a mixed-use project, providing housing to all income levels that are attracted to this neighborhood.”
Lichtenstein continued to say that Heritage has always focused on “pioneering projects in new and growing neighborhoods” and this project “brings to the fore our team’s strengths in development, construction, and brings our vision to fruition, creating a beautiful building that will cater to all residents of these neighborhoods. While the pandemic has delayed all development projects in NYC, we are happy that we can move ahead with this project immediately, thanks to our long-running relationship with Madison Realty Capital.”
