A group led by JPMorgan Chase is negotiating to provide a roughly $375 million construction loan for Tishman Speyer’s Downtown Brooklyn condominium project next to the Macy’s department store, sources told The Real Deal.
JPMorgan would lead the financing for 11 Hoyt Street and likely syndicate part of the debt to other lenders, sources said. Tishman Speyer began searching in April for a floating-rate loan with a five-year term and an option to extend. Sources said the bank is very close to signing a term sheet.
The total project cost has been pegged at $685 million, putting the loan-to-value ratio at around 55 percent. Plans call for 475 condos, 150 parking spaces, 41,000 square feet of retail and 55,000 square feet of indoor and outdoor amenities. The developer filed an offering plan with the New York state Attorney General’s office last month and, according to Commercial Mortgage Alert, is projecting a sellout of $1,760 per square foot for the apartments.
The firm paid a combined $170 million in 2015 for the Macy’s parking garage, air rights and the upper levels of the store.