BridgeCity Lends $55M on Brooklyn Mixed-Use Asset With DoorDash Lease
By Andrew Coen February 2, 2022 11:45 am
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Joseph Banda’s Ranco Capital has nabbed $55 million of bridge financing for a new multifamily, mixed-use asset in Park Slope, Brooklyn, Commercial Observer has learned.
BridgeCity Capital originated the bridge-to-permanent loan on Banda’s The Deermar, a 72-unit property with 3,755 square feet of retail space leased to DoorDash. The short-term debt package carries a 12-month term at an interest rate of 5.95 percent with a 75 percent loan-to-value ratio. It replaces a previous acquisition and construction financing of $39.1 million provided by Bank Leumi.
Located at 262 9th Street, the 72,000 square-foot, 11-story property was originally designed as a condominium building before being converted to rentals due to the hot multifamily market that blossomed after the height of the COVID-19 pandemic. Its amenities include community facility space, gym, laundry room, bike room and storage lockers.
“This asset is a unique uber-luxury rental building that offers condo amenities and finishes to a level not yet seen by the Park Slope market,” said Moishe Loketch, director of investor capital at BridgeCity, who closed the deal with his partner Allan Lebovits. “The DoorDash occupancy of the retail space further enhances the value of this Class A building. We thought this would be a great loan for a repeat borrower while he leases up the project and is able to go for permanent financing.”
Brooklyn-based BridgeCity has a portfolio of mixed-use and multifamily developments throughout New York City, New Jersey and South Florida.
Banda did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
