RedSky hands over Williamsburg retail portfolio valued at $145M

LLC indicates new owner L3 Capital was mezzanine lender on properties

New York /
Jan.January 08, 2021 05:21 PM
RedSky Principal Benjamin Bernstein and a section of the prooperties along N6th in Williamsburg. (RedSky)

RedSky Principal Benjamin Bernstein and a section of the prooperties along N6th in Williamsburg. (RedSky)

 

Embattled developer RedSky Capital has transferred ownership of a portfolio of Williamsburg retail properties in a deal valuing them at $145 million.

The company, headed by Benjamin Bernstein and Benjamin Stokes, handed over ownership of the 14 properties near North 6th Street and Bedford Avenue, property records filed with the city Friday show.

Newmark Knight Frank's Evan Layne and Brett Siegel

Newmark Knight Frank’s Evan Layne and Brett Siegel

RedSky handed the keys back to its mezzanine lender on the property, BlackRock, in a deed-in-lieu of foreclosure action. BlackRock then did a joint venture with Chicago-based investor L3 Capital. Brett Siegel, Evan Layne, Dustin Stolly and Jordan Roeschlaub at Newmark arranged the deal.

Neither RedSky nor L3 could be immediately reached for comment.

The properties are 92, 102, 108, 110, 112, 124 and 134 North 6th Street; and 132, 184, 186, 188, 190, 192 and 204 Bedford Avenue. Tenants include retailers like Vans and Warby Parker.

The portfolio doesn’t include RedSky’s highest-profile retail properties, anchored by the Apple store a few blocks away at 247 Bedford Avenue.

RedSky ran into trouble in 2019 when its partner JZ Capital Partners realized it would need to take a large writedown on its overvalued portfolio.

L3 Capital, meanwhile, is doubling down on the Williamsburg retail scene. The company already owns a portfolio of properties on nearby Wythe Avenue, North 7th Street and Kent Avenue.





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