Alpaca Real Estate Recaps Brooklyn Multifamily Property

Alpaca Real Estate just led a recapitalization of The Axel, 284-unit luxury residential tower in Brooklyn, N.Y., Commercial Observer has learned.

Jeffrey Gershon’s Hope Street Capital developed and opened the 29-story, Class-A property in 2022.

The building is valued at $300 million, and it is unclear how much Alpaca Real Estate contributed to the recapitalization, but sources close to the deal said Alpaca contributed  preferred equity to recapitalize the stack.

The building’s original lender, MF1 Capital, contributed $204 million to an initial refinancing of the building in November 2022, per Walker & Dunlop, and is staying in the recapitalized deal, according to a source. 

Daniel Carr, managing partner of Alpaca Real Estate, said in a statement that the deal reflects his firm’s decision to prioritize properties with “strong tailwinds” in a “gateway market.”

“On behalf of our investors, Alpaca is excited to continue its investment in high-growth urban areas with the recapitalization of this premier project,” said Carr. 

Located at 545 Vanderbilt Avenue near the Barclays Center at the nexus of neighborhoods Fort Greene and Clinton Hill, The Axel features a mix of units ranging from studios to three-bedrooms, and includes amenities such as a fitness center, a yoga studio, a game room, a golf simulator, a private business center, a rooftop sky deck, and an outdoor pool.

Gershon, who leads Hope Street Capital, said that the Axel’s “prime location” in the center of several Brooklyn neighborhoods and subway lines into Manhattan positions it to benefit from numerous trends that are powering the New York City multifamily market, notably limited supply and surging demand. 

“We are thrilled to partner with Alpaca Real Estate on a fantastic asset that we have been involved with for over a decade,” said Gershon in a statement. 

Brian Pascus can be reached at bpascus@commercialobserver.com