The Real Deal New York

Sitex secures $94M to buy Red Hook development site

LoanCore Capital is the lender for the six-property assemblage
By Miriam Hall | May 12, 2017 12:15PM

The Red Hook development site (Credit: Google Maps)

UPDATED: May 12, 1:45 p.m.,: Sitex Group scored a $94 million acquisition loan for the Red Hook development site it is buying from Est4te Four.

LoanCore Capital is the lender for the site, according to records filed with the city Friday. The financing is divided into several mortgages, the documents show.

Sitex is paying Italian developer Est4te Four $110 million for the five-property site at 219 Sullivan Street, 44, 68 and 100 Ferris Street and 242 Coffey Street, according to reports.

Est4te Four had been planning a $400 million, 1.2 million-square-foot megadevelopment along the waterfront, but ultimately abandoned those plans. The Milan-based developer had paid $66 million for the properties, but had trouble landing financing and was searching for a capital partner.

New Jersey-based Sitex, led by Brian Milberg and David Friedman, will keep the site at Red Hook industrial. Milberg said the plan is to do a substantial rehabilitation to the properties to reposition them for “modern-day distribution.” The firm’s near-term plan is to keep the site for “last-mile distribution” — an industry term for transporting goods to their final destination.

Earlier this month, LoanCore provided a $59 million bridge loan to Investors Samson Klugman and Leo Tsimmer for several Greenwich Village retail-and-residential buildings where they eventually plan to add 14 stories of office space. In March, it supplied $60 million to HK Organization to refinance the firm’s Clinton Hill rental property at 275 Park Avenue.

Representatives LoanCore were not immediately available for comment.

Update: An earlier version of this story incorrectly stated Sitex bought 202 Coffey Street. The story has been updated to include comments from Brian Milberg.