Spitzer Recaps 420 Kent Avenue, Meadow Partners Takes Minority Stake
Williamsburg waterfront property valued at more than $650M
By Cathy Cunningham March 28, 2024 10:29 am
reprints
Eliot Spitzer has recapitalized his multifamily project at 420 Kent Avenue in Brooklyn, bringing in Meadow Partners as a partner in the deal, Commercial Observer has learned.
Meadow Partners has taken a “sub-50 percent” stake in Spitzer Enterprises’ sprawling project, which sits on the Williamsburg waterfront overlooking the East River, and is currently valued at more than $650 million.
“At a very healthy valuation, we sold a small minority interest in 420 Kent,” a spokesperson for Spitzer Enterprises confirmed Thursday.
Newmark’s Adam Spies, Adam Doneger, Avery Silverstein, Monica Brendsel and Doug Harmon led the transaction on behalf of Spitzer, sources said.
The ODA New York-designed property spans 575,000 square feet and comprises 857 units across three glass towers, plus 443 indoor parking spaces. It boasts 80,000 square feet of outdoor amenities and 25,000 square feet of indoor amenities, including a spa, outdoor yoga, a billiards room, a gaming lounge and a catering kitchen.
It also benefits from the state’s now-expired 421-a tax abatement.
In November 2020, Spitzer refinanced 420 Kent Avenue with a $398 million loan package, led by Citigroup. The lender provided a $298 million, 10-year senior commercial mortgage-backed securities (CMBS) loan in the deal, while Rexmark provided a $90 million mezz loan. The $398 million in debt remains on the property today.
In a 2018 interview with CO, Spitzer discussed the project and his hope that it would attract “a younger demographic with a little more hair than me.” It did exactly that, and today 420 Kent Avenue is around 99 percent leased, sources said.
The same Newmark team is currently working on the recap of Durst Organization’s Sven property in Long Island City, Queens, as reported by The Real Deal.
Meadow Partners and Newmark didn’t return requests for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com
