Steiner sells majority stake in DoBro rental tower to JPMorgan fund

Partners also landed $330M refinancing for the property

TRD New York /
Mar.March 22, 2019 05:45 PM

333 Schermerhorn Street in Brooklyn (Credit: Elegran)

Steiner NYC has sold a majority stake in the Hub, its 55-story Downtown Brooklyn rental tower.

The sale of the stake coincided with a $330 million refinancing of the property at 333 Schermerhorn Street, one of the borough’s tallest residential buildings, according to the developer.

“Simultaneous to our closing, we took some money off the table and brought in the bluest of blue-chip institutions as a partner, which is a great outcome for everyone,” chairman Doug Steiner said in the release.

A JPMorgan real estate equity fund was the partner, sources told The Real Deal. Property records show that a 62 percent stake in the Hub, worth $253 million, has been transferred to an LLC with an address at 277 Park Avenue, which is home to some of JPMorgan’s offices.

The valuation of that stake puts the building’s total value at about $408 million.

The new $330 million permanent loan comes from Nuveen Real Estate, and replaces a $300 million construction loan provided by Bank of America in 2015, with participation by CIT Bank, Helaba, Santander and TD Bank.

A JLL team led by Jonathan Schwartz, Aaron Appel, Kelly Gaines and Michael Diaz arranged the debt.

The 750-unit rental tower was completed in 2017 and includes 150 affordable units. The property includes street level retail on Schermerhorn Street, Livingston Street, and Flatbush Avenue, and will soon be home to Compass’ fourth Brooklyn office.

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