Rubenstein reels in $178M refi at 25 Kent
Apollo provided loan for eight-story mixed-use building in Brooklyn
Rubenstein Partners can pat itself on the back after landing a $178 million refinancing package at 25 Kent Avenue in Williamsburg, Brooklyn.
Apollo Commercial Real Estate Finance provided the loan for the mixed-use building, the Commercial Observer reported. The eight-story, 500,000-square-foot building was billed the borough’s first major Class A office construction property in about 50 years when it opened.
A Newmark team led by Dustin Stolly and Jordan Roeschlaub arranged the financing, according to the Observer.
The development, which is co-owned by Heritage Equity Partners, in 2019 landed fashion brand Kith as the first tenant for the project. Kith signed a lease for almost 58,000 square feet, expecting about 90 people to ultimately work at the building in a relocation from its Soho headquarters.
In 2020, Amazon Music signed a lease for 40,000 square feet at the property. The streaming service aimed to use the space as either a studio or production space. The lease deal came about shortly after Amazon revealed it was moving Twitch into Amazon Music.
Wells Fargo and Natixis Real Estate Capital provided a $197 million construction loan to commence work on the commercial development in 2016. The loan came about shortly after the City Council voted to rezone the site in North Williamsburg.
Apollo Global Management’s commercial real estate arm has been the lender on several major projects in the past. The Apollo unit provided a $96.5 million loan on A&E Real Estate’s $133.5 million purchase of a Sutton Place apartment building in 2021, done in partnership with the Tennessee Consolidated Retirement System. The building was purchased from SL Green Realty.
Apollo Commercial Real Estate Finance also provided a $187 million construction loan to Normandy Real Estate Partners and Columbia Property Trust for the development of a boutique office building at 799 Broadway, where Newrez recently agreed to lease two floors.
[CO] — Holden Walter-Warner