The Real Deal New York

Starwood financing Westbrook and RXR’s $161M purchase of 47 Hall: sources

Sternlicht's firm provides $90M acquisition loan, will provide another $70M+ for redevelopment of 550K sf property

March 04, 2016 03:19PM
By Hiten Samtani Twitter_logo_blue copy

From left: Westbrook COO Sush Torgalkar, Starwood Capital's Barry Sternlicht, Steven Vegh, Ruby Schron and Scott Rechler, with 47 Hall Street

From left: Westbrook COO Sush Torgalkar, Starwood Capital’s Barry Sternlicht, Steven Vegh, Ruby Schron and Scott Rechler, with 47 Hall Street

UPDATED, 1:14 p.m., March 7: Westbrook Partners and RXR Realty closed on the purchase of 47 Hall Street, a 550,000-square-foot property just south of the Brooklyn Navy Yard, for $161 million, sources told The Real Deal. Barry Sternlicht’s Starwood Capital Group is acting as the lender on the deal, sources said. Starwood provided a roughly $90 million acquisition loan and will cough up another $71 million for redevelopment costs. 

The transaction, which closed for north of $300 per square foot, is one of the bigger investment sales deals in Brooklyn. The sellers — a partnership including Rubin Schron’s Cammeby’s International, Eli Fruchthandler and Bruce Federman — had been declining to renew leases at the building prior to the sale, as TRD reported in September.

Westwood Realty Associates’ Steven Vegh, who was the sole broker on the sales transaction, confirmed the sale but declined to comment further. Representatives for RXR, Starwood and Westbrook didn’t immediately respond to requests for comment, but sources said the partners are planning to convert the property into Class A office space for tech and creative tenants. The total project cost, including the acquisition and redevelopment, is said to be close to $290 million.

An HFF team composed of Michael Tepedino, Christopher Peck and Steven Klein represented RXR and Westbrook in the financing deal. Peck confirmed the loan deal but declined to comment further.

Correction: A previous version of this story cited sources saying the financing deal was brokered by Meridian Capital Group. In fact, it was HFF. 

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