Affordable housing tops outer-borough loans with $1.4B for NYCHA upgrades

Major acquisition loan for Kaufman Astoria Studios, Brookfield refinances in Brooklyn and more in our monthly roundup

(Nelligan White Architects, Emporis, LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
(Nelligan White Architects, Emporis, LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)

Totalling $1.35 billion, the three largest real estate loans issued in the outer boroughs in January came from public-private initiatives to repair public housing facilities in Brooklyn. The New York City Housing Authority secured federal funds for repairs through PACT, a program that allows private companies to manage NYCHA buildings while capping tenants’ rents at 30 percent of household income.

In the private capital market, Hackman Capital Partners and Square Mile Capital secured refinancing for their purchase of Kaufman Astoria Studios and Brookfield refinanced one of its Blue Slip towers in Greenpoint Landing.

Combined, January’s ten largest outer-borough loans came to $2.85 billion. Below are more details on each of them:

1. Williamsburg Houses | $472 million

An affiliate of MDG Design & Construction and Wavecrest Management received about $472 million in loan proceeds from city authorities and JPMorgan Chase and to upgrade the NYCHA-owned Williamsburg Houses, a 20-building site with 1,621 residential apartments in Brooklyn, formerly known as Ten Eyck Houses. The buildings once displayed murals, since removed to the Brooklyn Museum, which were commissioned by the Works Progress Administration, a Depression-era infrastructure agency created as part of the New Deal. JPMorgan will hold two thirds of the construction loans, public records show.

2. Linden Houses and Penn-Wortman | $440 million

A consortium of companies including L+M Development Partners, Douglaston, Dantes and SMJ received $440 million in loan proceeds from city agencies and Wells Fargo to upgrade NYCHA’s Linden Houses and Penn-Wortman properties in East New York. Some 22 buildings and 1,922 apartments will receive upgrades with the funding. Wells Fargo will hold two-thirds of the construction loans.

3. Boulevard, Belmont-Sutter, Fiorentino Plaza | $436 million

A corporation controlled by public and private entities including Hudson Companies, Property Resources Corporation and Duvernay + Brooks received $436 million in loan proceeds to redevelop three publicly owned complexes with 1,673 apartments across 29 buildings in East New York. NYCHA, the New York City Housing Development Corporation and JPMorgan Chase provided the funds.

4. Follow the money | $340 million

Hackman Capital Partners and Square Mile Capital received $340 million in loan proceeds, including $252 million in new debt, from Deutsche Bank to refinance Kaufman Astoria Studios, the film and television studio which the joint venture bought last year in a deal valued at $600 million. The studio was originally home to Paramount Pictures before the company moved to California in the 1930s.

5. Blue suede slips | $293 million

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Brookfield Properties refinanced debt at 41 Blue Slip (a.k.a. “Two Blue Slip”) at Greenpoint Landing with $292.5 million in loan proceeds, including $75.2 million in new debt, from an affiliate of the Berkshire Group. The 30-story rental tower stands next to Brookfield’s 37 Blue Slip (a.k.a. “One Blue Slip”). The loan replaces debt issued by a quartet of international lenders including the Industrial and Commercial Bank of China and Scotiabank.

6. In the zone | $220 million

Vorea Group, Domain Companies and L+M Development Partners landed $220 million in construction loans from Wells Fargo for a 500-unit residential property at 2-33 50th Avenue in Hunters Point, Queens. The trio bought the site, which is in an Opportunity Zone, last September for $88.5 million.

7. Maspeth complex | $175 million

Madison Realty Capital secured $141.7 million in new construction loans from Apollo Global Management, plus refinanced $33.3 million in existing debt, for its mixed-use development at 69-02 Queens Boulevard and 46-15 69th Street in Maspeth, Queens. The two-building complex will have 500 apartments, including 150 affordable housing units, and a new school building for 476 students, the Sunnyside Post reported. The refinance replaces debt held by ConnectOne Bank.

8. Townhouses in tow | $175 million

The Carlyle Group secured up to $175 million in loan proceeds, including $20.2 million in new funds, from Invesco to refinance a 12-building residential portfolio that spans 49,000 square feet, consisting mostly of multifamily townhouses in Brooklyn.

9. Affordable funding | $163 million

Phipps Houses secured about $163 million in loan proceeds from the New York City Housing Development Corporation to build 279 residential units at 2080 Boston Road in West Farms, the Bronx. The units will be part of the Lambert Houses, an affordable housing development slated to eventually include 1,665 residential units, according to the Bronx Times.

10. Surf’s up | $139 million

BFC Partners received about $139 million in public loan proceeds to build a 10-story residential building with 376 affordable units and 20,000 square feet of community and commercial space at 1607 Surf Avenue in Coney Island. The funds represent the second phase of the project, with the first phase of 400 units and five retail spaces completed at 2926 West 19th Street.

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