S3 Capital Provides $85M Construction Loan on Brooklyn Lot to Build Apartments
A joint venture purchased the lot for $48M
By Brian Pascus December 2, 2024 4:15 pm
reprints
The development train continues out in the Brooklyn neighborhood of Williamsburg.
A joint venture among The Joyland Group, Tissa Management and Brooklyn developer Joel Wertzberger has secured $85 million to redevelop 133 Kent Avenue, a vacant lot that will be turned into a luxury residential condo, Commercial Observer has learned.
L3 Capital sold the vacant lot to the joint venture for $48.25 million as part of the deal.
S3 Capital provided the $85 million construction loan, while the JLL Capital Markets team of Geoff Goldstein and Aaron Niedermayer arranged the construction financing. The JLL team of Ethan Stanton, Brendan Maddigan and Michael Mazzara represented L3 Capital in the sale.
Joshua Crane, co-founder and managing principal of S3 Capital, said in a statement that the Brooklyn neighborhood of Williamsburg remains attractive to both investors and developers “due to its vibrant culture, waterfront access, and retail options.”
“Given these favorable market fundamentals, our team is pleased to continue our significant investment in the area,” said Crane. “This development reflects the growing demand for luxury living in this location.”
The lot at 133 Kent Avenue is near the East River, Marsha P. Johnson State Park and Bushwick Inlet Park. The lot currently carries a 20,000-square-foot footprint and is zoned for up to 72,000 buildable square feet.
Plans for the site call for 52,000 square feet of residential space spread across 43 luxury condominium units, along with approximately 17,500 square feet of retail divided into six ground-floor units, according to S3 Capital. The residential part of the building will include amenities such as a children’s playroom, a fitness center, a coworking and resident lounge, and a rooftop deck and terrace.
Shawn Safdie, head of origination at S3 Capital, said his team has confidence in the project and the Williamsburg submarket due to his firm’s 13 years of experience in financing development across the neighborhood.
“We believe that this project will serve a critical role in meeting both the housing and retail needs of a rapidly developing community,” said Safdie.
Brian Pascus can be reached at bpascus@commercialobserver.com
