Bravo Property Trust, Integritas Capital Provide $125M Financing for Dumbo Office-to-Resi Conversion

Wolfe Landau’s Watermark Capital Group has secured $125 million of construction financing for a Brooklyn office-to-residential conversion project, Commercial Observer can first report.

Bravo Property Trust, the construction and bridge lending affiliate of Bravo Capital, in partnership with Integritas Capital, provided the loan on 175 Pearl Street, a former eight-story office building in Brooklyn’s Dumbo neighborhood that Watermark purchased from Cannon Hill Capital Partners to convert to residential use. 

The construction loan was closed nearly a year after BridgeCity Capital closed a $50.6 million acquisition loan as part of Watermark’s plans to repurpose the 1918-built property, as CO first reported at the time. 

“We are proud to finance best-in-class locations like Dumbo, and sponsors who have a decades-long track record of consistent success,” Aaron Krawitz, CEO of Bravo Capital and Bravo Property Trust, said in a statement.

The conversion project will involve creating multifamily rental units in the existing eight-story building and a new 11-story condo built on top, according to Bravo. Community amenities will include tenant lounges and a fitness center. 

The 19-story project is slated for completion in 2027. 175 Pearl sits at the corner of Pearl and Sands streets, between the approach ramps to both the Brooklyn Bridge and Manhattan Bridge.

The apartment portion of the development will receive benefits under New York City’s new 467m program that will provide a tax abatement for 35 years in exchange for setting aside 25 percent of the units as affordable housing, according to Bravo. The abatement provides a 65 percent percent exemption for the first 30 years before dropping 10 percent annually, beginning in the 31st year. 

“The Dumbo conversion is a prime example of revitalizing a top-tier location while creating high-quality housing in a market with strong demand,” Gabi Moshayev, co-founder and chairman of Bravo Property Trust, said in a statement. 

Stephen Palmese, co-founder and managing principal of Integritas Capital, said in a statement that his company is one “among the few nationally to have converted office and other commercial buildings to residential in multiple cities” as part of its equity strategy. 

Officials at Watermark Capital did not immediately return a request for comment.

Andrew Coen can be reached acoen@commercialobserver.com