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

Financing replaces $32M loan from UBS

New York /
Sep.September 11, 2018 06:15 PM

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.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
1065-1075 Gerard Avenue in the Bronx 

Prana pays Related $36M in Bronx multifamily play

Prana pays Related $36M in Bronx multifamily play
The Grace Building at 1114 Sixth Avenue (Photo via Wikipedia Commons)

Here’s what tenants are paying at Brookfield & Swig’s Grace Building

Here’s what tenants are paying at Brookfield & Swig’s Grace Building
Brookfield Property Partners chairman Ric Clark and former Tishman Speyer executive Philip “Tod” Waterman (Getty; LinkedIn)

Ric Clark and Tod Waterman launch investment firm

Ric Clark and Tod Waterman launch investment firm
One Madison Avenue and Marc Holliday (Photos via SL Green)

SL Green snags $1.25B construction loan for One Madison Avenue

SL Green snags $1.25B construction loan for One Madison Avenue
Silvercup Studios (Getty)

Outer-borough loan activity fired up in October

Outer-borough loan activity fired up in October
11 Penn Plaza and 120 Wall Street (VNO, Wikipedia Commons)

Manhattan’s top real estate loans post second best month since March

Manhattan’s top real estate loans post second best month since March
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...