The Real Deal New York

GFI secures $50M financing for Downtown BK hotel

Developer started work on 13-story "lifestyle hotel" last month
By Rey Mashayekhi | March 02, 2016 12:35PM

61 Bond Street Brooklyn

Construction work at 61 Bond Street in Downtown Brooklyn (credit: Tectonic via NY YIMBY) (inset: Allen Gross)

GFI Capital Resources Group secured a $50 million construction loan for a new “lifestyle hotel” it is developing in Downtown Brooklyn, property records filed with the city Tuesday show.

The real estate investment firm, led by Allen Gross, received a $33 million building loan and $17 million project loan from real estate lending firm iStar Financial.

The financing will go toward GFI’s development of a new 13-story, 157,000-square-foot hotel at 61 Bond Street in Downtown Brooklyn. GFI, affiliate GB Lodging and partner Spruce Capital started work on the planned 285-key, Stonehill & Taylor Architects-designed project last month.

While previously reported to become an Ace Hotel, GB Lodging’s website identifies the development only as a “lifestyle hotel” slated to open in the spring of 2018.

Neither GFI nor iStar returned requests for comment.

The developer paid nearly $13.5 million for the site, which consists of seven Downtown Brooklyn parcels, in May 2014, according to property records. GFI has faced obstacles along the way to developing the assemblage, including community opposition to a zoning variance.

Gross’ firm acquired the Carlton Hotel in NoMad for more than $162 million in October, as The Real Deal reported.