Lonicera scores $134M loan for DoBro tower
Developer plotting 314-unit project at 15 Hanover Place
Lonicera Partners has landed construction financing for a Downtown Brooklyn project, set to be one of the last developments of the 421a era.
The developer scored a $134 million loan for the mixed-use project at 15 Hanover Place, the Commercial Observer reported. City National Bank and Santander provided the debt, which was arranged by a Cushman & Wakefield team including Gideon Gil and Zachary Kraft.
Gil told the outlet this would be one of the last assets developed under the 421a tax program, which expired last month.
Lonicera’s project calls for 314 units across 295,000 square feet. The 34-story tower would include 9,000 square feet of commercial space. Because of 421a, 95 of the building’s apartments will be affordable.
Fogarty Finger is the architect on the project, which will include a 63-car parking garage. A terrace is planned for the roof of the building, while the cellar is set to feature a fitness room, game room, yoga studio and kid’s room.
Lonicera purchased one of the five relevant tax lots for the project last July for $12.8 million.
The development site has controversy in its past, dating back to a 2016 lawsuit investor Abraham Leifer filed against the Liberman Group after the owner terminated a contract to sell the site for $44 million. Leifer was trying to develop a $70 million assemblage in the area.
Santander and City National Bank have worked with Lonicera in the past. In 2019, Lonicera landed $70 million for its nearby project at 308 Livingston Street. The loan served as construction and acquisition debt for the 160-unit project.
Founded in 2010, Lonicera has been making recent residential ripples in Downtown Brooklyn. At the beginning of the year, the developer filed plans for a 290-unit, mixed-use building at 55 Willoughby Street. The plans call for a 38-story tower with 223,000 square feet of residential space and 4,500 square feet for commercial use.
— Holden Walter-Warner