The Real Deal New York

Flank pays $88M to buy Carlyle out of the Hilton Brooklyn

Partners developed a 196-key hotel at 140 Schermerhorn
By Kathryn Brenzel | December 20, 2016 05:20PM

The Boerum Brooklyn Flank

Rendering of the Boerum in Boerum Hill

Architecture and development firm Flank paid $88 million to buy the Carlyle Group out of the Hilton Brooklyn.

Flank and Carlyle TRData LogoTINY bought the site at 140 Schermerhorn Street in 2012 for $38.2 million. The partners are developing a 196-key hotel on the property, but hired Eastdil Secured to market the property earlier this year. Last month, the Wall Street Journal reported that Flank would actually take over Carlyle’s stake. At the time, though, the price was not clear.

As part of the deal, Flank is refinancing the hotel with a $55 million senior bridge loan from M&T Bank and a $15 million mezzanine loan from Terra Capital. The hotel is part of a larger mixed-use development at 265 State Street at the Boerum, which has 128 condo units. Representatives for Flank and the Carlyle Group did not immediately return messages seeking comment.