Kushner Companies, RFR Seeking $435M Refi for Dumbo Heights Office Project
By Andrew Coen April 6, 2023 2:17 pmreprints
Kushner Companies and RFR Holdings are seeking up to $435 million in debt to refinance the joint venture’s five-building Dumbo Heights creative office campus in Brooklyn, Commercial Observer has learned.
The financing sought would include a five-year, fixed- or floating-rate loan with interest-only payments. The deal would fund closing costs along with “contractual landlord obligations” tied to Etsy’s long-term renewal for its corporate headquarters through 2039.
CBRE (CBRE) Capital Markets’ James Millon, Tom Traynor, Mark Finan and Michael Sherman are leading the debt assignment, sources said, with bids due in late April. Officials for CBRE did not immediately return a request for comment.
The Dumbo Heights portfolio features three properties at 117 Adams Street, 55 Prospect Street and 77 Sands Street with roughly 663,079 square feet of rentable space. The campus is anchored by Etsy, which has housed its headquarters at 117 Adams Street and 55 Prospect Street since 2015.
The recent extension of Etsy gives the Dumbo Heights campus portfolio a weighted average remaining lease term of 11.5 years, with 12 percent of the net rentable area expiring over the next five years, according to information shared with CO. The sponsorship has received “significant interest” from prospective tenants to lease the portfolio’s vacant space, sources said.
Since acquiring Dumbo Heights in 2013, Kushner and RFR have aimed to redevelop the campus into a tech hub with a “live-work-play” atmosphere. In addition to Etsy, the JV has also brought in a number of retail tenants including coffee roaster Bluestone Lane, brewpub Randolph Beer, specialty soup maker Springbone Kitchen and Japanese ramen restaurant chain Ippudo, which recently signed a 10-year lease at 117 Adams Street.
Officials at Kushner and RFR did not immediately return requests for comment.
Andrew Coen can be reached at email@example.com