Louis Greco’s plan to stack condos on top of 285 Schermerhorn finally moves forward

The developer received a $53M construction loan; work is due to begin within the month

TRD New York /
Oct.October 24, 2018 02:00 PM

285 Schermerhorn Street in Brooklyn (Credit: Google Maps)

Louis Greco’s Second Development Services (SDS) is finally getting to work on a condominium conversion of Brooklyn Community Services’s (BCS) headquarters at 285 Schermerhorn Street in Downtown Brooklyn.

SDS and an undisclosed private investor landed a three-year construction loan of $53.25 million from hard money lender G4 Capital, in a deal that closed Monday, according to G4 partner Jason Behfarin. The transaction included a “cash-flowing multifamily building” on 33rd Street in Manhattan as collateral and Ares Capital provided a $23.3 million mezzanine loan.

G4 partner Robyn Sorid said the interest rate on the loan was “in line with our financing program for an asset of this character and credit quality,” which is roughly “550 over to 750 over” LIBOR. The New York-based lender also provided SDS and the investor with a $26.3 million acquisition loan for the property about a year ago, said Behfarin.

SDS’s plans to add residential component to BCS’s existing seven-story office was first proposed in 2015. At the time, the Wall Street Journal reported that ownership of a 17,000-square-foot office condo was to be retained by the nonprofit, while SDS would own the 100-unit residential addition.

According to plans approved by the city’s Department of Buildings, the 14-story mixed-used new building at 285 Schermerhorn would total about 92,500 square feet with 79,000 square feet allocated for residential use and about 14,000 for commercial. Behfarin expects construction to begin within the “next 30 days.”

Neither BCS or SDS would comment on the residential condo conversion plans, which do not appear to have been filed yet with the New York Attorney General’s office.

Jonathan Aghravi, the former managing director of Eastern Consolidated’s capital advisory division, and his four-person team brokered the deal between G4 and the developer. Aghravi and his team have been operating independently since the commercial brokerage closed in July.


Related Articles

arrow_forward_ios
Rendering of the Tokyo Tokiwabashi project (Courtesy of Mitsubishi)

Mitsubishi unveils design for Japan’s tallest skyscraper

Mitsubishi unveils design for Japan’s tallest skyscraper
Charles Rettig, Commissioner of the IRS (Getty)

Opportunity Zone rule change seeks to entice foreign investors

Opportunity Zone rule change seeks to entice foreign investors
Larry Korman (Photo by Emily Assiran)

The self-lockdown lifestyle of AKA’s Larry Korman

The self-lockdown lifestyle of AKA’s Larry Korman
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
The proposal to rezone Industry City in Brooklyn was unveiled five years ago, but collapsed under political pressure (Courtesy of Industry City)

Here’s how Industry City’s controversial rezoning unraveled

Here’s how Industry City’s controversial rezoning unraveled
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
Ian Schrager and the Pulic Hotel at 215 Chrystie Street (Getty; Google)

$60M mezz loan on Ian Schrager’s Public Hotel is for sale

$60M mezz loan on Ian Schrager’s Public Hotel is for sale
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
arrow_forward_ios

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

Loading...