Blackstone Leads $220M Refi for Brooklyn Resi Buildings

A joint venture involving The Loketch Group, Joyland Group and Meral Property Group has landed a $220 million debt package to refinance two newly built adjacent Brooklyn multifamily assets, Commercial Observer has learned.

Blackstone originated the fixed-rate, five-year, interest-only loan with participation from CenterSquare for the two eight-story residential towers at 268 Lorimer Street in Williamsburg. The debt deal retires a previous $172 million loan from TPG.

Arrow Real Estate Advisors arranged the transaction with a team consisting of Morris Betesh, Alex Bailkin and Andrew Rosenberg. 

“These newly delivered Class A buildings underscore the sustained demand for luxury living in the heart of Williamsburg, and this permanent financing reflects that strength,” Betesh, founder and managing partner at Arrow Real Estate Advisors, said in a statement. “Arrow created a highly competitive bidding environment across all execution types.”

Located at the corner of Lorimer Street and Broadway, the two residential buildings encompass 318,428 gross square feet with six ground-floor retail suites and 221 below-grade parking spaces. The unit mix ranges from studios to two-bedrooms. Community amenities in both buildings include a fitness center, a lounge and rooftop spaces.

Both buildings were completed in summer 2024, and were fully stabilized within nine months following an accelerated lease-up, according to Arrow.  

CenterSquare, The Loketch Group, Joyland Group and Meral Property Group did not immediately return requests for comment. Blackstone declined to comment. 

Andrew Coen can be reached at acoen@commercialobserver.com.