BMO Provides $35M Refi for Williamsburg Multifamily Portfolio

Flatiron Real Estate Advisors has landed a $34.8 million loan to refinance a 12-property multifamily portfolio in Williamsburg, Brooklyn, Commercial Observer has learned.

Bank of Montreal (BMO) supplied the loan, which retires past debt from the portfolio’s previous lender, Oritani Bank, which was acquired by Valley National Bank in 2019. The 92 apartments in the 12 buildings are a mix of free-market and rent-controlled units acquired by Flatiron in 2005. 

Arrow Real Estate Advisors arranged the transaction with a team consisting of Morris Betesh, Omar Ferreira and Jacob Petrovic. 

“This transaction reflects continued lender appetite for well-located, cash-flowing multifamily assets in core New York City neighborhoods, particularly when backed by quality sponsorship with a proven operating history,” Betesh, founder and managing partner at Arrow Real Estate Advisors, said in a statement.

The Williamsburg buildings in the portfolio are at 113 North Eighth Street, 137 North Eighth Street, 14 Judge Street, 146 Wythe Place, 21 Judge Street, 24 Skillman Avenue, 29 Orient Avenue, 429 Graham Avenue, 436 Graham Avenue, 792 Metropolitan Avenue, 81 Olive Street and 90 Berry Street.

Steve Ancona, founder and president of Flatiron Real Estate Advisors, credited Arrow with advising BMO through a complex deal by stressing the performance of the overall portfolio performance with debt service coverage ratios and debt yield metrics that exceeded lender thresholds. 

“They did a great job at communicating to lenders the value we created in our Williamsburg portfolio through our team’s diligent management and thoughtful reinvestment in the buildings,” Ancona said in a statement. 

Officials at BMO did not immediately return requests for comment. 

Andrew Coen can be reached at acoen@commercialobserver.com