The Real Deal New York

Catsimatidis lands $50M loan for Brooklyn resi building

Red Apple Group purchased building in February for $69M
By Eddie Small | March 01, 2018 06:30PM

670 Pacific Street and John Catsimatidis

John Catsimatidis’ Red Apple Group has landed a $49.5 million loan for a recently purchased Brooklyn apartment building at 670 Pacific Street, property records show.

M&T Bank originated the financing, which replaces a $25.3 million mortgage that KeyBank provided on the site in 2014.

Catsimatidis acquired the property from Robert Wolf’s Read Property Group for $69.2 million in February. The deal was done through a 1031 exchange with proceeds from the $65.2 million sale of the former corporate headquarters for Gristedes on Manhattan’s West Side. The recently constructed building, located near the Barclays Center in Prospect Heights, stands eight stories tall and contains 86 units. The property also has a 90-spot parking garage.

“I think we paid a little bit more than I really wanted to, but we had the ability to do that because of the 1031,” Catsimatidis said at the time of the purchase. “This reinforces our love for Brooklyn and our trust in the borough.”

Elsewhere in Brooklyn, Catsimatidis is planning a 425-unit mixed-use project in Coney Island called Ocean Dreams that will include a trolley car to take tenants to the subway.