Slate Property Group and Meadow Partners secured a $110 million loan to develop One Flatbush, a 19-story rental property soon rising in Downtown Brooklyn.
The ground-up development project will result in a roughly 170,000-square-foot building with 157 rental apartments and 24,500 square feet of retail space across the bottom two floors. Of the apartments, 125 will be market-rate units and 32 affordable.
From left: Aaron Appel and Jonathan Schwartz
Midtown-based investment firm Winter Properties, which notably sold the Crown Building last year with Spitzer Enterprises for a record $1.78 billion, provided a $30 million mezzanine loan. Wells Fargo, meanwhile, provided an $80 million senior mortgage, according to JLL, which brokered the financing.
The developers filed plans in October 2014. One Flatbush, which will have a black steel-and-brick façade, is now undergoing foundation work. The Goldstein, Hill & West-designed property will have the addresses 1-11 Flatbush Avenue and 546-556 Fulton Street. It is slated to open by spring or summer 2017.
The residential component is part of the city’s 80/20 housing program, which is granting a 25-year property tax abatement. Slate’s David Schwartz said they have yet to determine the range of rents.
JLL’s Aaron Appel and Jonathan Schwartz brokered the financing.
Last year, the developers paid a record price-per-square-foot price for a Downtown Brooklyn development site — $491 a foot, totaling $59 million. The site housed a two-story retail property at the time.
Just next door, Slate and Meadow are planning condominiums, at 560-570 Fulton Street. They bought that site for $23 million in September.