Lightstone Group scores $120M to refi Gowanus rental

Loan carries floating interest rate of 3.5%
By Miriam Hall and Chava Gourarie | May 03, 2017 03:50PM

365 Bond Street and David Lichtenstein

The Lightstone Group secured $120 million to refinance its rental building at 365 Bond Street in Gowanus, according to documents filed with the Tel Aviv Stock Exchange.

The two-year loan will refinance a $120 million construction loan from Canyon Capital Realty Advisors,  which was issued in 2014 and was due April 27. The new loan carries a floating interest rate of 3.5 percent over LIBOR and will mature in May 2021. The firm also has a $53 million mezzanine loan on the property, according to Lightstone’s 2016 year-end report.

It was not immediately clear who provided the new loan.

The 12-story, 323,000-square-foot building at 365 Bond Street is the first phase of the David Lichtenstein-led firm’s 700-unit rental complex. The second building is located at 363 Bond Street, which Atlantic Realty Development bought into for $75 million in 2015.

Units at 365 Bond started leasing in March last year, and construction was completed last August.  As of December, the building was valued at $264 million and 39 percent occupied, according to Lightstone. The company expects it to be at 98 percent occupancy by this summer.