The Real Deal New York

Brookfield just landed a $96M loan for its South Bronx megaproject

Financing replaces $32M loan from UBS
By Eddie Small | September 11, 2018 06:15PM

Brookfield’s Ben Brown and renderings of 2401 Third Avenue in the Bronx (Credit: LinkedIn and Curbed NY)

HSBC has loaned Brookfield Property Partners $96.2 million for the company’s South Bronx megaproject.

The loan for Brookfield’s purchase of 101 Lincoln Avenue and 2401 Third Avenue replaces a $31.9 million loan from UBS in 2015, according to property records.

The funding from HSBC is an acquisition loan, according to Brookfield. Representatives for HSBC did not immediately respond to a request for comment.

Brookfield recently closed on its $165 million purchase of the site from Somerset Partners and the Chetrit Group. They plan to build about 1,300 residential units across seven buildings on the property, 30 percent of which would be affordable.

Brookfield hopes to break ground at 2401 Third Avenue during the second quarter of 2019 and open the building during the third quarter of 2021. They hope to start construction at 101 Lincoln Avenue late next year.

Chetrit and Somerset were seeking a construction loan of up to $500 million when they were still planning to develop the project, which would have likely set a new record for the Bronx.

The Real Deal recently ranked Brookfield as the eighth largest property owner in New York City with roughly 17.5 million square feet of space. The firm is also working on Greenpoint Landing in Brooklyn and has reached a deal with Kushner Companies for a 99-year lease at 666 Fifth Avenue with an option to buy.