NEW YORK—Hudson Realty Capital LLC (Hudson) has funded a $17.0 million first mortgage secured by a vacant industrial loft building in Brooklyn. In addition to using the loan proceeds to acquire the property, the borrower will also use the funds to establish reserves and has secured a $2.5 million upsize option from Hudson, conditionally on obtaining certain approvals from the New York City Landmarks Preservation Commission.
Located in Brooklyn’s Down Under the Manhattan Bridge Overpass (DUMBO) section, the property is situated on Water Street between Jay Street and Bridge. Totaling 81,805 sq. ft. of space, the property is a former factory building that was constructed in 1913. The borrower plans to convert and reposition the property to a multifamily building and plans to update the façade and add additional floors.
“This repeat, experienced client approached Hudson because of the atypical complexities associated with this particular asset acquisition,” said Spencer Garfield, managing director, originations. “Our flexible financing and surety of execution allow the borrower to pursue the necessary approvals and renovations in order to firm up the business plan and secure conventional financing.”