The Real Deal New York

RedSky lands $139M loan to refi 12 Williamsburg properties

Firm has spent $137 million assembling the portfolio since 2013

October 07, 2016 03:45PM
By Chava Gourarie

From left: 184-186 Bedford Avenue in Williamsburg and Benjamin Bernstein

184-186 Bedford Avenue in Williamsburg and Benjamin Bernstein

RedSky Capital landed a $138.6 million loan to refinance 12 properties it’s acquired over the last three years along Bedford Avenue and North 6th Street in Williamsburg.

The financing, provided by Kohlberg Kravis Roberts, consolidates an unpaid balance of $100.5 million on a prior loan, and also includes a $23 million construction loan and a $14.9 million gap mortgage.

Dumbo-based RedSky, led by principals Benjamin Bernstein and Benjamin Stokes, has paid $137 million over the last three years to assemble the 12 properties in the heart of Williamsburg. Six of the properties lie along North 6h Street between Wythe Avenue and Berry Street, and the remaining six front Bedford Avenue, near the L train stop.

The North 6th Street buildings are nearly all adjacent, spanning from 92 to 112 North 6th Street, but RedSky notably hasn’t acquired a key property in the middle — 106 North 6th Street. The Bedford Avenue buildings are clustered one block away between North 5th and North 7th streets, with the exception of one building further north, at 132-134 Bedford Avenue.

RedSky closed on the last of the properties, a 2,500-square-foot building at 108 North 6th Street with three residential units, for $8.7 million last month.

It’s unclear what RedSky has planned for its holdings in Williamsburg. RedSky and KKR were not immediately available for comment.

Last September, The Real Deal reported that the firm was also working on piecing together a 500,000-square-foot assemblage in Downtown Brooklyn. It added a 5,000-square-foot commercial building at 555 Fulton Street to the site in September, paying $10 million. It’s one of a dozen parcels it now owns at the site.