The Real Deal New York

Yoel Goldman scores $215M loan for Rheingold Brewery project

Madison ups financing from $70M to $285M for 1M sf Bushwick rental complex

November 18, 2016 09:00AM
By Chava Gourarie and Mark Maurer

Rendering of Rheingold Brewery (inset: Josh Zegen)

Rendering of All Year Management’s project on the Rheingold Brewery site in Bushwick (credit: ODA New York) (inset: Josh Zegen, courtesy of Chance Yeh)

Yoel Goldman’s All Year Management secured $215 million in new construction financing from Madison Realty Capital for a massive rental project on the former Rheingold Brewery site in Bushwick, The Real Deal has learned.

The financing is in addition to an earlier $70 million first mortgage provided by Madison in April, bringing the total to $285 million, sources said. Of the $285 million, Madison will provide $235 million of those funds in a two-year loan and will reserve up to $50 million as a second loan if necessary to complete the development, according to a filing with the Tel Aviv Stock Exchange.

The floating-rate loan carries a minimum interest rate of 10.5 percent, the filing showed. The filing did not identify the lender, though sources said Madison, a Midtown-based investor-lender led by Josh Zegen TRData LogoTINY and Brian Shatz, provided the financing.

The $165 million that Madison is providing now would rank as the largest amount provided by the firm to date. Previously, Madison’s largest loans were $124 million for Raphael Toledano’s East Village multifamily portfolio purchase and $107 million for Fortis Property Group’s Long Island College Hospital purchase in Cobble Hill.

Representatives for All Year and Madison declined to comment.

In June, Goldman revealed plans for a 1 million-square-foot complex with 900 to 1,000 rental apartments on the Bushwick site. ODA New York’s design intends to mimic a European village with courtyards and common spaces, rather than a linear New York grid.

Goldman bought the two adjacent parcels, at 123 Melrose Street and 28 Stanwix Street, in two separate deals totaling $140.7 million. A third parcel on the 6.4-acre site is owned by Simon Dushinsky and Isaac Rabinowitz’s Rabsky Group. Rabsky has proposed its own 500-unit, 400,000-square-foot development, also designed by ODA, on a separate portion of the site.

For All Year, a prolific Brooklyn multifamily landlord, this project marks its largest development yet. In August, TRD looked at how both projects on the former brewery site will impact the neighborhood’s rental market.

MENU