SMBC Provides KKR With $145M Acquisition Financing in Deal to Buy The Paxton
KKR and Dalan Management formed a joint venture in July to buy the 43-story condo for $240M from Jenel Real Estate
By Brian Pascus October 21, 2024 12:18 pm
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Private equity giant KKR (KKR) has secured $145 million in acquisition financing to purchase The Paxton, a 192,870-square-foot, Class A rental condominium that opened last year in Downtown Brooklyn, Commercial Observer has learned.
Sumitomo Mitsui Banking Corporation (SMBC) led by Alex Cabria, provided the acquisition financing, while Newmark (NMRK)’s Jordan Roeschlaub and Chris Kramer brokered the acquisition.
CO reported in late July that KKR and Dalan Management formed a joint venture to purchase the 43-story tower from Jenel Real Estate for $240 million. Jenel Real Estate developed the property.
Located at 540 Fulton Street near the corner of Fulton Street and Flatbush Avenue in Downtown Brooklyn, The Paxton opened in 2023 and features 327 rental units — of which 228 are market-rate and 99 are affordable — that range from studios to three-bedroom units. Due to the number of affordable units, the building benefits from New York’s now-expired 421a tax abatement, which provides 35 years of tax abatements on the property.
The Paxton includes 100,000 square feet of office space. It is not yet clear if the acquisition includes this component of the building, but KKR did not acquire the tower’s 36,000-square-foot retail base, as CO earlier reported.
SMBC and KKR did not respond to requests for comment. Newmark declined to comment.
Brian Pascus can be reached at bpascus@commercialobserver.com
