Williamsburg luxury rental project in motion with $73M construction loan
Financing from BridgeCity Capital will fund 123-unit development
Most developers would salivate at the prospect of an empty corner lot in Williamsburg. Yoel Hershkowitch is ready to build on his.
The low-profile Brooklyn developer scored a $72.5 million construction loan from BridgeCity Capital to put up an eight-story, 123-unit luxury rental building with a 4,020-square-foot retail space on the ground floor.
The building, at 416 Metropolitan Avenue, will wrap around the corner of Marcy and Metropolitan avenues with rounded glass windows lining the curve. It will feature a rooftop garden and recreation space, and set aside affordable units to qualify for the 421a tax break.
Shell company 420 Metro LLC, linked to Joseph Banda of Ranco Capital, purchased the parcel for $19 million in August 2020, property records show. The venture also owns an adjacent lot and development rights, which it bought for $4.5 million around the same time from local developer Hung Henry Koon.
BridgeCity is a four-year-old lender led by Allan Lebovits. It aims to close $750 million in deals this year, and recently closed a $400 million funding round from domestic and international investors, according to Moishe Loketch, the firm’s director of business development.
The loan to Hershkowitch closed on Dec. 30 and runs for 24 months with extension options.