Steiner NYC Acquires Brooklyn’s Hub Tower in $419M Buyout

Steiner NYC is now the sole owner of the Hub, a massive 55-story residential tower in Downtown Brooklyn.

Steiner was already part owner in a joint venture with J.P. Morgan Asset Management, but the developer paid $418.6 million to buy out J.P. Morgan and acquire full ownership of the 750-unit property at 333 Schermerhorn Street, according to a source with knowledge of the deal.

“We take enormous pride in Hub, so we are thrilled to now have full ownership,” Doug Steiner, chairman of Steiner, said in a statement.

JLL (JLL)’s Rob Hinckley, Jeffrey Julien, Andrew Scandalios and Steven Rutman represented both Steiner and J.P. Morgan in the deal. Walker & Dunlop’s Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno and Christopher de Raet brokered the financing side of the deal for Steiner.

JLL and J.P. Morgan declined to comment. Crain’s New York Business first reported the news.

Meadow Partners also provided $62.5 million of preferred equity to support the purchase, according to Walker & Dunlop.

“This deal stands apart from traditional financings due to its complex structure, which involved an equity buyout and the sourcing of preferred equity to help capitalize the transaction,” Appel said in a statement. “We are excited to see Steiner gain full ownership of this landmark property.”

The Hub, between Nevins Street and Flatbush Avenue, was the tallest skyscraper in Brooklyn upon its completion in 2018, but was later overtaken by the 93-story Brooklyn Tower at 345 Flatbush Avenue Extension.

The Hub offers studio apartments starting at $3,799 per month and one-bedrooms starting at $4,734 per month, according to Zillow.

The building comprises 600 market-rate units and 150 affordable units, as well as 33,000 square feet of ground-floor retail space.

Isabelle Durso can be reached at idurso@commercialobserver.com.