L3’s Williamsburg retail properties snag $91M refi

Properties are located along North 6th Street, North 7th Street and Wythe Avenue

New York /
Jan.January 27, 2020 01:16 PM
Clockwise from left: 168-170 Wythe Avenue, 115 North 6th Street and 129-133 Kent Avenue with L3 Capital's Domenic Lanni (Credit: Google Maps)

Clockwise from left: 168-170 Wythe Avenue, 115 North 6th Street and 129-133 Kent Avenue with L3 Capital’s Domenic Lanni (Credit: Google Maps)

L3 Capital has landed a $90.5 million loan to refinance 11 retail properties in Williamsburg spanning 85,000 square feet.

The portfolio includes 81-83, 85-87, 89, 91, 111, 113 and 115 North 6th Street, 104-106 and 108 North 7th Street, 168-170 Wythe Avenue, 51 North 6th Street and 129-133 Kent Avenue, according to JLL, which brokered the deal. Tenants include a Madewell pop-up and Rosarito Fish Shack.

L3 began putting the mixed-use portfolio together in 2015 and has since repositioned most of the properties. The loan came from Ladder Capital.

Representatives for Ladder and L3 Capital did not respond to requests for comment.

A JLL team led by Geoff Goldstein, Rob Rizzi and Brett Rosenberg arranged the deal.

L3 is based in Chicago, where it recently bought three Fulton Market properties at 932 West Randolph Street, 1020 West Randolph Street and 1020 West Lake Street for $19 million.

Retail rents in Williamsburg — specifically along Bedford Avenue between Grand Street and North 8th Street — have been going down since peaking at an average of $393 per square foot during the summer of 2017, according to figures from the Real Estate Board of New York. Average asking rents dropped 17 percent last summer to hit $326 per square foot.

The decline hit home for Williamsburg’s biggest retail landlord RedSky Capital last year, when JZ Capital Partners, RedSky’s partner on its $1 billion portfolio, wrote down the value of their real estate by as much as a third.

Meanwhile, the area’s office market got a recent boost. Rubenstein Partners and Heritage Equity Partners inked a lease with the fashion brand Kith at the end of 2019 to be the first tenant in the nearby 25 Kent, the first ground-up commercial building in Williamsburg in more than 40 years.


Related Articles

arrow_forward_ios
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
From left: JLL’s Tim Rivers, Levine Kellogg’s Jeffrey Schneider, Meland Budwick’s Mark Meland, Blanca Commercial Real Estate’s Tere Blanca, Savills’ Tom Capocefalo and Collier’s Jonathan Kingsley
The money’s moving to South Florida. Will the office leases follow?
The money’s moving to South Florida. Will the office leases follow?
Newmark’s Barry Gosin (left) and CBRE’s Bob Sulentic
Weird flex but OK: How CRE giants hope to cash in on the future of the office
Weird flex but OK: How CRE giants hope to cash in on the future of the office
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
(iStock/Illustration by Kevin Rebong for The Real Deal)
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Year from Hell: 80% of Brooklyn businesses saw revenue drop
JLL CEO Christian Ulbrich (Photo via Jll/Twitter; Photo Illustration by Kevin Rebong for The Real Deal)
JLL earnings fell 24% in 2020
JLL earnings fell 24% in 2020
Brock Emmetsberger and B6 CEO Paul Massey (Photos via JLL; Massey via Axel Dupeux)
Veteran broker Brock Emmetsberger joins B6
Veteran broker Brock Emmetsberger joins B6
RedSky Principal Benjamin Bernstein and a section of the prooperties along N6th in Williamsburg. (RedSky)
RedSky hands over Williamsburg retail portfolio valued at $145M
RedSky hands over Williamsburg retail portfolio valued at $145M
arrow_forward_ios

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

Loading...