All Year closing in on $675M refi for Rheingold Brewery development

The firm signed a non-binding memorandum with a consortium of lenders

Feb.February 20, 2020 03:00 PM
Denizen Bushwick at 54 Noll Street (Credit: iStock, Google Maps)

Denizen Bushwick at 54 Noll Street (Credit: iStock, Google Maps)

A big deal is in the works for All Year Management’s massive mixed-use project on the former Rheingold Brewery site, also known as Denizen Bushwick.

The Brooklyn development firm led by Yoel Goldman has signed a non-binding memorandum of understanding with “a consortium of leading financial institutions in the U.S.” for a $675 million refinancing of both phases of the development, according to a disclosure filed with the Tel Aviv Stock Exchange.

The first phase of the 911-unit development serves as collateral for All Year’s Series E bonds, and that bond series will be paid off if and when the refinancing closes. The second phase of the project was refinanced with a $235 million senior loan from JPMorgan Chase and Mack Real Estate Group last June.

According to the memorandum, $658.5 million of the loan package will be available for withdrawal immediately upon closing, while the remainder will be subject to additional financial terms.

The 10-year, non-recourse, interest-only loan will also cover 10 other “non-essential” properties, the disclosure says. The parties are working to finalize a loan agreement within the next 30 days.

A representative for All Year declined to comment.

As detailed by The Real Deal on Thursday, Goldman’s firm has recently come under scrutiny from a Bronx-based investor who has taken a short position on its Series E bonds, alleging serious concerns with irregularities in the project’s property records.

All Year’s Series E bonds have risen sharply in the past day, and are now trading at more than 100 cents on the dollar for the first time since they were issued in 2018.

History of All Year’s Series E bond prices since issuance. (Source: TASE)

History of All Year’s Series E bond prices since issuance. (Source: TASE)

In addition to this refinancing of the Denizen Bushwick, All Year is also seeking to either refinance or sell the William Vale hotel and office complex in Williamsburg, which backs the firm’s Series C bonds. All Year announced these plans in December, shortly after posting a $41 million loss for the third quarter.

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