The Real Deal New York

Slate Property’s Scale Lending strikes first deal for a Brooklyn resi project

The platform plans to provide up to $750M citywide
By Meenal Vamburkar | March 05, 2019 08:00AM

834 Pacific Street in Brooklyn with Slate’s Martin Nussbaum (Credit: Google Maps)

Scale Lending — a partnership between Slate Property Group and the Carlyle Group — has closed on its first deal in New York.

The platform provided a $35 million construction loan for 834 Pacific Street in Brooklyn, according to the company. Happy Living Development is planning to convert a Prospect Heights rectory into a residential rental project at the site.

The loan is part of Scale’s intent to provide up to $750 million in financing across the city. The firm’s offerings include construction loans and condominium inventory loans. Scale launched at the end of last year. Carlyle is providing the majority of the financing, but Slate has previously declined to quantify the specific split between the two companies.

The company will target non-institutional developers that are typically shut out of traditional bank financing and also offer clients in-house construction and development consulting.

“The deals we’re going to be really focusing on are going to be land loans, ground-up construction — both rental and condo — and condo inventory loans,” Slate co-founder Martin Nussbaum said last year. “I think that’s the space that we think we can add the most value.”

The Prospect Heights development is slated to span 90,000 square feet with 69,000 square feet of residential space divided between 88 apartments. Plans also call for 20,000 square feet of community facility space. Amenities will include a gym and a storage area. It will also have a doctor’s office at the basement.

The proposed project will replace a three-story building that sits within the grounds of Co-Cathedral of St. Joseph. Isaac & Stern Architects is designing the building, according to permits filed with the Department of Buildings.

Last year, Happy Living, headed by Levi Balkany, acquired a distressed Harlem asset that once belonged to Hans Futterman. The company bought the property at 300 West 122nd Street from RWN Real Estate Partners for about $70 million. For years, it was the planned site of a 12-story, 127-unit condo project.