Industry City Associates has successfully restructured its $300 million loan on Bush Terminal, a 16-building complex along the Brooklyn waterfront in Sunset Park, Crain’s reported. The ownership defaulted on the loan early last year after the economic downturn forced many office and industrial tenants out of their space, requiring Industry City to pay off the debt out of pocket.
Under the new terms the loan was split into two parts and the interest rate was cut by 160 basis to 4.68 percent through April 2013. The debt doesn’t mature until September 2017, at which point Industry City has the opportunity to extend its deal with lenders Wells Fargo and Midland Loan Services for an additional two years.
Industry City has invested more than $15 million to upgrade the space, and will put an additional $35 million into the property. Bush Terminal has a variety of tenants attracted to the relatively inexpensive space: asking rents run from $8 per foot for industrial space to $25 per foot for office space.
“Since the beginning of last year, we have had an influx of tenants who were displaced from Williamsburg and other surrounding areas that are no longer affordable,” said Bruce Federman, the firm’s real estate director. [Crain’s]