Hasidic investors seek $144M loan for religious housing project at Cascade Linen site

Developers planning seven-building, 550K sf complex in Bed-Stuy

TRD New York /
Mar.March 29, 2016 02:00 PM

The owners of the former Cascade Linen factory site in Bedford-Stuyvesant are seeking a $144 million construction loan for a large religious housing development on the site, sources told The Real Deal.

A group of investors from Williamsburg’s Hasidic Satmar community including Abraham Brach, Nachman Leibowitz and Fishel Deitch are planning to proceed with a seven-building, mixed-use complex proposed by the site’s previous owner, sources said. The site’s addresses include 553-569 Marcy Avenue, 833-869 Myrtle Avenue and 90-134 Stockton Street.

The site is best known as the longtime home of the Cascade Linen Supply Company, which operated the buildings as its industrial plant from 1898 until 2010.

In 2013, Mike Kohn’s Alliance Capital Group bought the nine buildings on the site for $27 million. In December 2014, the firm filed plans for the aforementioned complex, slated to span 550,000 square feet. Plans called for 228 apartments across 450,000 square feet, as well as a 100,000-square-foot commercial component. Each building would have 25 to 45 apartments and rise six stories.

The housing would be marketed to families and other members of the Orthodox Jewish community.

Brach and partners bought the site from Alliance Capital Group for $70 million in March 2015, property records show.

At the same time, they secured $22 million in interim debt from Canadian non-bank mortgage lender Romspen in March 2015, records show.

After the buildings were demolished last year, the owners encountered a new obstacle. The New York Department of Environmental Conservation found that the land’s soil, groundwater and soil vapor are contaminated with lead and other chemicals, DNAinfo reported in February. The state agency said the level of contamination surpasses state standards, but does not pose a “significant threat.”

The investors control the entity Cascade 553 LLC, which has a mailing address at the notorious LLC farm 199 Lee Avenue. They could not be reached for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
902 Drew Street and 400 East 58th Street (Google Maps)

New York’s multifamily sales improve in Q3

New York’s multifamily sales improve in Q3
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
The number of mortgage borrowers in Covid-19 forbearance plans ticked down again this week. (iStock)

3M homeowners remain in forbearance

3M homeowners remain in forbearance
Phil Collins wants to sell his Miami Beach mansion for $40M, but his ex-wife won’t leave

Phil Collins wants to sell his Miami Beach mansion for $40M, but his ex-wife won’t leave

Phil Collins wants to sell his Miami Beach mansion for $40M, but his ex-wife won’t leave
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...