The Real Deal New York

Quinlan & BLT refi DoBro’s Pioneer Building with $152M loan

Senior loan replaces $132M mortgage from KKR in 2017
By Kevin Sun | March 07, 2019 04:45PM

41 Flatbush Avenue and PCCP East Coast Head Originator John Randall (Credit: Pioneer Building and PCCP)

Quinlan Development Group and Building & Land Technology have landed a $152 million senior loan from PCCP for their recently converted Downtown Brooklyn office building.

The financing will go towards recapitalization and lease-up of the Pioneer Building at 41 Flatbush Avenue, and replaces a $132 million loan from KKR for the conversion of the former storage facility in 2017.

The consolidated debt consists of a $122 million acquisition mortgage, a $22.5 million building mortgage and a $7 million project mortgage, according to city records recorded last month.

“PCCP sees this loan as an opportunity given the proven experience of Quinlan and BLT on similar infill projects,” John Randall, the firm’s head originator for the East Coast, said in a statement. “As New York City continues to gain momentum as a technology hub, Brooklyn is a borough that offers tenants lower rents, a young tech-savvy workforce, and a variety of retail and amenities.”

The developers acquired the 230,000-square foot property, formerly the headquarters of an auction house with additional storage space, for about $90 million in 2015. It has now been converted into a 270,000-square-foot, 10-story office building with ground floor retail space.

The first tenant to sign at the building was podcasting company Gimlet Media, which signed a 10-year lease on the seventh floor in 2017. Last month, Gimlet Media was acquired by music streaming giant Spotify in a $230 million deal.

Other office tenants at the building include fundraising tech firm Blue State Digital and co-working company Spaces. Retail tenants include UPS and Blick Art Materials.

PCCP, formerly Pacific Coast Capital Partners, last year provided a $169 million loan to refinance a Hell’s Kitchen rental building owned by USAA Real Estate Co., DHA Capital and Patrinely Group.