Landau Lands $213M For Planned Brooklyn Heights Tower

Jonathan Landau announced some fresh funding for his ambitious plans in Brooklyn Heights.

Landau Properties, in a partnership with the Mizrachi family’s Third Millennium Group and Midtown Equities, closed on the purchase of 205 Montague Street, the firms announced in a press release. The deal was financed with $113 million in senior secured debt from Northwind Group and $100 million in equity, including $25 million in preferred equity from Atlas Capital Group.

The financing covers the acquisition and predevelopment phase of the project, according to the release.

The closing comes almost two years after Landau, the former CEO of Fortis Property Group, filed plans with the Department of Buildings for a 47-story tower.

The mixed-use project will include 46 condo units, 90 rental apartments and 40,000 square feet of retail space. Construction is expected to begin early next year.

The release indicates that the Cayre family’s Midtown Equities, which had bought the site for $33 million in 2010, is staying on as one of the project’s sponsors. The family had put the site up for sale in 2015, seeking $200 million.

The release does not indicate what plans exist, if any, for the neighboring 195 Montague Street, which had been included as part of the initial building application filed by Landau last year.

The site sits at the intersection of Brooklyn Heights and Downtown Brooklyn. If completed, the 672-foot tower will be one of the neighborhood’s tallest properties, and a marked divergence from the brownstone-lined streets that have drawn record townhouse deals.

Estreich’s Raffi Landau represented Northwind and Rosewood Realty Group’s Aaron Jungreis represented Atlas in the deal.

The project “is well positioned to benefit from sustained demand in this supply-stricken neighborhood,” Ran Eliasaf, Northwind founder and managing partner, said in a statement.

Landau is making good on his forecast issued during a panel at The Real Deal’s New York Forum, when he said it’s a “damn good time to be building in New York City.”

The developer’s other projects since leaving Fortis have been in South Florida. He was reported earlier this month to have sold out the Indian Creek Residences & Yacht Club luxury waterfront development on Bay Harbor Islands, where he’s also developing offices.