A year after completion, a group of developers locked down a refinancing for their 305-unit multifamily property in Williamsburg.
The Loketch Group, Joyland Group and Meral Property Group scored a $220 million debt package to refinance a pair of residential buildings at 268 Lorimer Street, the Commercial Observer reported. The debt retires a $172 million loan from TPG.
Blackstone provided the fixed-rate, five-year, interest-only loan on the two eight-story buildings. CenterSquare also participated in the financing, which was arranged by Arrow Real Estate Advisors’ Morris Betesh, Alex Bailkin and Andrew Rosenberg.
The development at the corner of Lorimer Street and Broadway spans 318,000 square feet with a variety of residential layouts and amenities, including a fitness center, a lounge and rooftop spaces. There are also six retail suites and more than 200 parking spaces.
Both buildings were completed last summer and were stabilized following a quick lease-up period, according to Arrow.
The joint venture acquired the development site, also addressed as 555 Broadway, from bankrupt co-living company The Collective in 2022 for $54 million. The Collective had planned to build a 500-unit apartment on the site.
The investor group landed a $137 million loan from Slate Property Group’s lending arm, SCALE Lending, to finance the acquisition and construction at the site.
Last month, a limited liability company tied to Loketch sold a 19,000-square-foot, 27-unit apartment building in Stuyvesant Heights to real estate investor Guy Peleg for $8.5 million. Loketch bought the property for $500,000 in 2013.
In the spring, Citigroup provided an $88 million loan to Joyland for a luxury apartment building in East Williamsburg. The financing for the 138-unit development, known as The Wave, replaced a $60 million loan from Churchill Real Estate Holdings.Â
— Holden Walter-Warner
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