Avery Hall scored $140.3 million from private equity giant KKR to refinance its luxury rental building One Boerum.
KKR affiliate Forethought Life Insurance Company provided the loan for the 22-story luxury rental building above the Borough Hall subway station in Downtown Brooklyn, records show.
The loan replaces debt from Canadian asset manager QuadReal. Avery Hall declined to comment. JLL’s Christopher Peck and Peter Rotchford represented Avery Hall in the deal.
The 250,000 square-foot building was originally set to be condos but the developers pivoted to luxury rentals before it was completed. The developers, a joint venture headlined by Avery Hall, landed an approximately $176.5 million debt package to recapitalize the Brooklyn tower in 2021.
Avery Hall bought the development site for about $77 million in 2016, razed the four-story Brooklyn Law School building there and purchased air rights from an adjacent property for $16 million. It secured a $165 million construction loan from the British Columbia Investment Management Corporation in 2019.
Amenities in the 138-unit building include a lap swimming pool, two-story gym, pet spa, playroom, communal roof with an outdoor kitchen, and automated parking for 47 vehicles.
The building is fully leased, according to Avery Hall’s website. Tenants in the 22,000-square-foot retail space include the food chain Chopt, a salon space rental company and Mighty Quinn’s barbecue restaurant.
A lease was signed in 2021 for one of the large penthouses at the development for $27,000 a month, the most ever paid for a Brooklyn apartment, Commercial Observer reported at the time.
The documents for the refinancing were signed by Adam Simon, who appears to be a managing director at KKR.
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