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 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.