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

Senior loan replaces $132M mortgage from KKR in 2017

New York /
Mar.March 07, 2019 04:45 PM

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.


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
Bank OZK CEO George Gleason (Photos via Bank OZK; iStock)
Bank OZK’s Q4 was “strong end to challenging year”
Bank OZK’s Q4 was “strong end to challenging year”
Gov. Andrew Cuomo (Getty, iStock, NY State Budget)
Cuomo proposes tax credits for restaurants, income tax increases
Cuomo proposes tax credits for restaurants, income tax increases
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)
7 Manhattan hotels head to auction block
7 Manhattan hotels head to auction block
Clockwise from top left: 48 Bedford Avenue in Williamsburg; 7601 4th Avenue in Bay Ridge; 55-25 58th Street in Maspeth; 42, 44 and 46 21st Street in Flatiron; 59-20 Van Doren Street in Corona (Photos via StreetEasy; Google Maps)
Mid-market investment sales off to strong start in 2021
Mid-market investment sales off to strong start in 2021
(Getty, iStock)
Flooding caused by climate change leads to mounting real estate costs
Flooding caused by climate change leads to mounting real estate costs
Mickey Rabina and 520 Fifth Ave. (Rabina, Ceruzzi Properties)
Rabina files plans for 70-story tower at beleaguered Fifth Ave site
Rabina files plans for 70-story tower at beleaguered Fifth Ave site
arrow_forward_ios

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

Loading...