Steve Witkoff and Apollo are ready to build Downtown Brooklyn’s latest rental tower thanks to a large construction loan from Bank of America.
Witkoff and Apollo Commercial Real Estate Finance nabbed $388.4 million to build a 51-story, 591-unit tower off of Fulton Street and DeKalb Avenue. The project, known as The Brook, will total 448,000 square feet, including more than 30,000 square feet of retail across two adjacent sites.
The western parcel at 565 Fulton Street will give rise to the apartment tower, including 30,000 square feet of amenities and over 17,000 square feet of above-ground retail. The neighboring site at 547-557 Fulton Street site will have another 14,000 square feet of retail.
A Walker & Dunlop team led by Aaron Appel and Keith Kurland arranged the financing.
The development site, known as the “Brooklyn Bowtie,” has a tumultuous history. It was once owned by RedSky Capital and JZ Capital, who began amassing Downtown Brooklyn properties in 2012. But in 2019, JZ Capital said it would write down the value of the firm’s shared portfolio by as much as $150 million.
The project’s $154.6 million loan, which was provided by Apollo, went into default a few months later. Witkoff came on as a development partner in November 2020 after initially claiming to be an advisor.