Moinian investing up to $180M for stake in Flatbush resi project

Solomon Feder, Israel Neiman are developing a 487-unit rental at 123 Linden Blvd.

New York /
Mar.March 08, 2017 12:57 PM

The Moinian Group is taking a nearly 50 percent stake in developer Solomon Feder’s conversion of a Brooklyn nursing home into a 487-unit rental building.

Joseph Moinian’s firm is lending Feder up to $160 million for the development at 123 Linden Boulevard, according to documents filed on the Tel Aviv Stock Exchange, where Moinian raised $361 million in 2015. In exchange for a 49.9 percent stake, Moinian will also invest up to nearly $20 million in the project, one of the largest in Flatbush, the documents said.

Already, Moinian gave Feder and partner Israel Neiman $23 million in February to refinance existing loans on the property, which they bought last year from the New York Congressional Center for Community Life. That $23 million is included in the $160 million that they’re able to borrow. Moinian’s loan has a floating interest rate of 8.25 percent and covers a period of 42 months. TASE documents state that Feder and Neiman can’t take on additional lenders for the duration of the loan.

The agreement also comes with a noncompete clause, stipulating that 123 Linden’s developers won’t develop a residential building with more than 100 units within a half-mile radius of the project until 2025. If they do, Feder and Neiman agreed to give Moinian the right of first offer to join the project.

Moinian and Feder did not immediately comment on the agreement.

Feder and Neiman paid $18.5 million for 123 Linden in 2016 and subsequently filed plans to demolish the existing four-story building, located between Rogers and Bedford avenues.

Plans for the new building, meanwhile, have grown several times.

Initially conceived as a seven-story building with 57 apartments, filings with the city’s Department of Buildings last year detailed 384 units across 376,507 square feet. Now, according to the TASE documents, the project will have 467 units across 470,100 square feet. It will also have parking and a community facility.

Despite the disclosure of its investment in 123 Linden in TASE documents, it’s unclear if Moinian is investing proceeds of its 2015 bond issuance at 123 Linden. The Moinian Group also launched a real estate investing platform last year, which completed $300 million in transactions to date, the company recently said.

Moinian previously dipped into its TASE proceeds when it gave developer David Marx a $65 million land loan to fund construction of a 399-room Marriott Courtyard in the Hudson Yards neighborhood.  That loan has since grown to $90 million, according to a year-end report Moinian filed with TASE.

Moinian also used bond proceeds to fund a $20 million loan at 245 Fifth Avenue in NoMad, which it co-owns with Joseph Sitt’s Thor Equities. Last year, Moinian and Thor refinanced the building with a $160 million loan from AIG Global Real Estate.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
From left: Kristen Gilibrand, U.S. senator for New York; Ritchie John Torres, U.S. representative for New York's 15th congressional district (Getty Images)
Lawmakers push for heat sensor mandate in wake of Bronx fire
Lawmakers push for heat sensor mandate in wake of Bronx fire
(iStock)
Manhattan’s retail market ticks up toward rebound
Manhattan’s retail market ticks up toward rebound
Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
Don’t call it a comeback: Austin hotels rebound but building never slowed
Don’t call it a comeback: Austin hotels rebound but building never slowed
Michael Medzigian, chairman and managing partner, Watermark Capital Partners (Watermark Capital Partners, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
From left: Kathy Hochul, governor of New York; Robert Mujica, director of the budget for New York State (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
$2B in Hochul budget could fund rent relief
$2B in Hochul budget could fund rent relief
1250 Mockingbird Lane, Dallas, TX (TXRE Properties)
Boston investor snags office building near Love Field in Dallas
Boston investor snags office building near Love Field in Dallas
arrow_forward_ios

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

Loading...