UPDATED, Dec. 26, 2018, 1:00 p.m.:For the second consecutive month, the top 10 outer borough loans consisted entirely of deals in Brooklyn and Queens.
Queens made up four of the top 10 loans in May, while Brooklyn took the other six spots. The Bronx and Staten Island were once again shut out.
A roughly $1.4 billion bond issuance to Delta Airlines for its massive renovation project at LaGuardia Airport took the top spot, followed by a roughly $500 million loan to Rockpoint Group and Brooksville Company for Starrett City in East New York. Other notable loans from the month included $65 million for Mack Real Estate’s planned waterfront development in Astoria and $52.2 million for Quinlan Development’s and Lonicera Partners’ Brooklyn Heights project at 157 Remsen Street.
The full list of top 10 outer borough loans for May is as follows:
1. Debt takes off at New York’s third best airport – $1.4 billion
The top financing for May by an incredibly wide margin was a roughly $1.4 billion bond offering from Empire State Development and Bank of New York Mellon to Delta Airlines. The money will go toward Delta’s $4 billion renovation project at LaGuardia Airport, which was approved in 2017 and includes consolidating Terminals C and D into just Terminal C, according to Commercial Observer.
2. Rockpoint and roll – $501.5 million
The loan in second place was less than half as much as the loan in first place: roughly $500 million from Wells Fargo to Rockpoint Group and Brooksville Company for Starrett City in East New York, now known as Spring Creek Towers. The two companies had been talking with Wells Fargo about a loan since at least September, when they signed a contract to buy Starrett City for more than $850 million. The Brooklyn complex consists of 46 buildings and 5,881 units, making it the largest federally subsidized housing development in the country.
3. From ACORE to KKR – $265 million
Westbrook Partners and Andrew Chung’s Innovo Property Group received a $265 million loan from KKR for 24-02 49th Avenue in Long Island City. The two companies purchased the property in 2016 for $195 million from Cammeby’s International and received a $136 million acquisition loan from ACORE Capital at the time. The new loan assumes the mortgage for ACORE and provides a $30.8 million gap mortgage.
4. Fountain of youth – $137.04 million
The New York State Housing Finance Fund loaned Arker Companies and the nonprofit Block Institute about $137.04 million for their project at 894 Fountain Avenue in East New York. The loan package consists of $75 million in first-mortgage debt through bond revenues and $62 million in a subordinate subsidy loan. The money goes toward building a 422-unit affordable housing project.
5. Bills land in Bushwick – $100 million
The fifth place loan was for $100 million from LoanCore Capital to Read Property and Princeton Holdings for their property at 930 Flushing Avenue in Bushwick. The 10-year loan refinances an $85 million mortgage from LoanCore and has a fixed rate of 4.17 percent, according to the Commercial Observer.
6. Another day, another refinancing! – $78.2 million
Bank of China loaned Urban Edge Properties about $78.2 million for Rego Center I at 96-05 Queens Boulevard. This is the same loan from U.S. Bank that dates back to 2009 and was refinanced multiple times. Rego Center II, right next door at 61-01 Junction Boulevard, has a $275 million loan from Bank of China.
7. Mack gets in on the action – $65 million
Mack Real Estate loaned $65 million to Cape Advisors and Wainbridge Capital for their project in Astoria at 30-77 Vernon Boulevard. The bridge loan for the waterfront development site is for 18 months with options to extend, and the companies are planning a luxury rental project for the site with 770 apartments across five buildings, according to the Commercial Observer. They purchased the site from Criterion Group for $85 million.
8. Loan redeemer – $64.4 million
Adam America Real Estate landed a roughly $64.4 million loan from Deutsche Bank for its Boerum Hill project at 561 Pacific Street, the former site of the Church of the Redeemer. The company purchased the site, also known as 24 Fourth Avenue, in July 2017 for $36 million and is planning to build a 63-unit condo project on the site.
9. Resi on Remsen – $52.5 million
USAA Life Insurance Company loaned Quinlan Development $52.5 million for its project at 157 Remsen Street in Brooklyn Heights. The company is building a 19-story, 60-unit rental project at the address with Lonicera Partners that will span 92,000 square feet. Amenities will include a fitness center, rooftop terrace and children’s playroom.
10. Gowanus loan, eh? – $52.4 million
May’s list closes out with a roughly $52.4 million loan from Canadian Imperial Bank of Commerce to Trinity Place Holdings for 470 Fourth Avenue in Gowanus. Adam America sold the property to Trinity for about $81.2 million in May.
Update: This story has been updated to reflect that the $1.4 billion from ESD to Delta was a bond issuance not a loan.
|Largest outer borough loans recorded in May 2018|
|1||LaGuardia Airport Terminals C and D at 83-00 23rd Avenue||$1.4 billion||Delta Airlines||New York’s Empire State Development and Bank of New York Mellon||Eat Elmhurst|
|2||Spring Creek Towers fka Starrett City at 1155 Pennsylvania and 45 other buildings||$501.5 million||Rockpoint Group and Brooksville Company||Wells Fargo Multifamily Capital||East New York|
|3||24-02 49th Avenue||$265 million||Westbrook Partners and Andrew Chung’s Innovo Property Group||KKR||Long Island City|
|4||894 Fountain Avenue||$137.04 million||Arker Companies and the Block Institute||New York State Housing Finance Fund and bondholders||East New York|
|5||930 Flushing Avenue||$100 million||Read Property and Princeton Holdings||Loancore Capital||Bushwick|
|6||Rego Center I at 96-05 Queens Boulevard||$78.2 million||Urban Edge Properties||Bank of China||Rego Park|
|7||30-77 Vernon Boulevard||$65 million||Cape Advisors and Wainbridge Capital||Mack Real Estate||Astoria|
|8||561 Pacific Street||$64.4 million||Adam America Real Estate||Deutsche Bank||Boerum Hill|
|9||157 Remsen Street||$52.5 million||Quinlan Development and Lonicera Partners||USAA Life Insurance Company||Brooklyn Heights|
|10||470 4th Avenue aka 237 11th Street||$52.4 million||Trinity Place Holdings||Canadian Imperial Bank of Commerce||Park Slope|
|Source: The Real Deal analysis of NYC Dept. of Finance loans recorded in May 2018. Refinance deals with the same lender, mortgage spreader agreements or extensions were not included. Loans with the city or its affiliates were not included.|