Gaia Lands Another Extension for Williamsburg Apartments’ $48M Loan

It’s déjà vu for GAIA Real Estate.

The developer landed for the second straight year a one-year extension for its $48 million loan  on loan with Raymond James Bank backing a multifamily property at 55 Hope Street in Williamsburg, Brooklyn, Commercial Observer can first report. The extension pushed the loan maturity to August 2027, which will be five years after Gaia acquired the 1907-built and 2012-renovated apartment building previously utilized as a pencil factory. 

“We acquired the property at the height of the COVID-19 pandemic, amid significant uncertainty in New York, and have since increased net operating income significantly through active management and a long-term approach to value creation, Danny Fishman, CEO and co-founder at Gaia Real Estate, said in a statement. “This extension demonstrates our ability to identify opportunities across market cycles and position our investments for sustained performance in Brooklyn’s multifamily market.”

Fishman added that lenders were interested in refinancing the loan given that the loan is less than 50 percent loan-to-value with a “very strong” debt service coverage ratio, but he opted to go the extension route due to the current rising interest rate climate. 

After purchasing the 117-unit property from Hope Street Capital for $80 million in August 2022, Gaia added coworking space and refurbished the building’s rooftop while also providing tenant concessions. Hope Street Capital acquired the building for $17 million in 2010 and converted it from industrial to residential use, The Real Deal previously reported. 

Raymond James Bank did not immediately return a request for comment.

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