Brooklyn tower secures $240 million loan
HIG Real Estate Partners, a subsidiary of HIG Capital, launched a $240 million loan to finance The Paxton, a 43-story, 330,000-square-foot mixed-use tower in downtown Brooklyn, NY, with 327 luxury apartments that is nearing completion at 540 Fulton St.
Further details of the new loan were not disclosed. the Trade Observer reported in December 2018 that Otera Capital Investments and Apollo Commercial Real Estate Financing granted a construction loan of $207.7 million to Jenel Management. Jenel, a private property investment and management company, is the developer of The Paxton, which is expected to deliver by the fall.
In addition to market-rate units, the tower at the intersection of Flatbush Avenue and Fulton Street will have 96 affordable apartments. Leasing is also underway for approximately 109,000 square feet of office space and 21,000 square feet of frontaged retail space along Fulton Street.
Michael Mestel, Managing Director of HIG Realty Partners, said in a prepared statement that the company is excited to be part of a well-built, well-located property in the growing downtown Brooklyn market. He described the tower, designed by Marvel Architectslike having high-end apartments and commercial spaces.
Residential amenities include a full-time doorman, lounge, fitness center, business center, package and laundry rooms, rooftop terrace, and bike storage. The apartments will be at 10and through 43rd floors. Offices, which will have floor-to-ceiling windows and plenty of terraces, will occupy the third through eighth floors with retail on the first and second floors of the 511-foot-tall building.
The developers describe the location as a 24-hour live/work/play environment. Located in the heart of downtown Brooklyn, The Paxton is close to public transportation, including the 2, 3, 4, and 5 trains at the Nevins Street subway station and the B, D, N, Q, R lines and W at DeKalb Avenue Subway Station. Neighborhood retail includes Macy’s, Century 21, Target, Nordstrom, Adidas, GameStop, Footaction and Duane Reade.
Brooklyn on the rise
Skyscraper construction, including mixed-use towers like The Paxton, is booming in downtown Brooklyn. In September, RXR Realty and Douglas Elliman Real Estate launched leasing at The Willoughby, a 34-story mixed-use development at 196 Willoughby St. JDS Development Group completed Brooklyn Tower at 9 DeKalb Ave., in October. The 93-story luxury skyscraper with 550 residential units stands at 1,066 feet and is now Brooklyn’s tallest building. In July 2020, Extell Development completed the 68-story, 458-unit Brooklyn Point at 138 Willoughby St., which stands 720 feet tall.
Other residential developments in Brooklyn include 555 Broadway, a ground-level development in Williamsburg expected to be a partially affordable housing property with approximately 300 units. SCALE Lending, a subsidiary of Slate Property Group, last month provided a $137 million loan to a joint venture of Loketch Group, Joyland Group and Meral Property Group, for the acquisition of the property and construction.