The Real Deal New York

HK Organization pulls off $60M refi of Brooklyn rental

LoanCore Capital is the lender on the 123-unit former Tootsie Roll factory
By Miriam Hall | March 24, 2017 01:00PM

275 Park Avenue (Credit: HK Organization)

Harry Kotowitz and Howard Klaus’ HK Organization secured $60 million to refinance its Clinton Hill rental property at 275 Park Avenue.

LoanCore Capital is the lender, according to records filed with the city Thursday. The financing includes a new $22.7 million mortgage and replaces previous loans on the property, documents show.

HK Organization paid $68 million for the 206,000-square-foot rental building in 2014.

The building was built as a Tootsie Roll factory in the 1890s, and was converted into lofts in 2002. The 123-unit building also has 25,000 square feet of retail space, which is leased to grocery store Fresh Fanatic. There are three active rentals at the building, with an average price of $2,794, according to StreetEasy. The site also has alternatives addresses of 39-53 Waverly Avenue and 78-88 Washington Avenue.

HK Organization developed luxury apartments in Dumbo and Williamsburg in the early 2000s. The firm joined with Midtown Equities and Rockwood Capital to develop Dumbo office complex Empire Stores. The firm’s portfolio also includes an 87-unit rental building at 99 Gold Street in Vinegar Hill, as well as a condo at 52 East 4th Street in Manhattan, according to the website.

A representative for HK Organization declined to comment. Representatives from LoanCore Capital were not immediately available.