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One Boerum Place lands $177M recapitalization

Avery Hall-led joint venture pivoting Brooklyn tower from condos to luxury rentals

1 Boerum Place in Brooklyn and Avery Hall founding partner Avi Fisher (Avery Hall)
1 Boerum Place in Brooklyn and Avery Hall founding partner Avi Fisher (Avery Hall)

One Boerum Place’s pivot to luxury rentals is moving ahead with an approximately $176.5 million debt package to recapitalize the Brooklyn tower.

QuadReal Property Group and Global Holdings Management Group led the recapitalization for the developers, a joint venture headlined by Avery Hall Investments. Global Holdings is contributing $40.5 million in mezzanine debt, according to the Commercial Observer.

Developers on the project also include Aria Development and Allegra Holdings. The Downtown Brooklyn building was set to be condos, only to pivot towards luxury rentals several months ago.

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Avery Hall bought the development site for about $77 million in 2016. The firm then spent another $16 million for the air rights needed for the project before securing a $165 million construction loan from the British Columbia Investment Management Corporation in 2019.

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The 22-story building announced its pivot in May; lenders and partners were on board with the switch. The tower will include one-bedroom apartments starting in the low $4,000s per month, two-bedroom units for under $6,000, three-bedrooms for about $8,500 and four-bedroom units asking $12,000.

Amenities in the building will include a lap swimming pool, a two-story gym, a yoga room, a playroom, a communal roof with an outdoor kitchen, automated parking for 47 vehicles and a Peloton studio.

Of the 138 rental units, 40 will have private outdoor space and there will be in-unit laundry. A 22,000-square-foot retail space will have frontage across Boerum Place and Fulton Street.

A lease was signed for one of the large penthouses at the development last month for $27,000 a month, the most ever paid for a Brooklyn apartment.

[CO] — Holden Walter-Warner

Tags
BrooklynCommercial Real EstateCondo ConversionsRental Market