UPDATED, 10:30 a.m., Oct. 27: The Bank of China and SL Green Realty are lending $220 million to the Industry City megadevelopment in Sunset Park in a deal that will recapitalize existing debt on the project.
The loan on the 16-building, 6 million-square-foot office development is expected to close in the next few weeks, with Bank of China funding the senior portion of the financing and SL Green providing the remainder in mezzanine debt.
The previous financing on the waterfront property, located between Second and Third avenues in Sunset Park, totaled $300 million and was securitized in the commercial mortgage-backed securities market, according to the New York Observer.
The original borrower on that debt, a group of investors led by Rubin Schron and Abraham Fruchthandler, defaulted on the loan in 2011. A new borrower entity, with sponsorship from Industry City partners Jamestown and Angelo, Gordon & Co., assumed the debt in 2013.
Jamestown and Angelo, Gordon & Co., as well as fellow partners Belvedere Capital and Schron’s Cammeby’s International, took over the former Bush Terminal in 2013 and have been redeveloping it as a $1 billion project targeted at creative, manufacturing and TAMI office tenants.
The Real Deal profiled Schron and his heirs earlier this month.[NYO] – Rey Mashayekhi
Due to an error in the source article, the loan figure was incorrectly stated in the first version of this report.