The 10 largest home loans recorded in New York’s outer boroughs in May totaled $1.16 billion, well above April’s $675 million but well below the $1.84 billion of it a year ago.
Six of the 10 loans were issued in Brooklyn, three in the Bronx and one in Queens. New construction loans proved popular amid rising housing and energy costs, and came in just ahead of the Federal Reserve raising interest rates by 75 basis pointsthe biggest increase since 1994.
Here are the details of the biggest loans from the outer boroughs of the past month.
1. Greene Fortress | $240 million
Rockrose Development by Henry and Justin Elghanayan received $240 million of Wells Fargo to construct a 49-story apartment building at 98 DeKalb Avenue in Fort Greene, Brooklyn. The 450,000 square foot structure will have 569 apartments, according to plans approved by the Buildings Department in May. Rockrose acquired the land and air rights to the project, also called 180 Ashland Place, in 2020 for $81 million.
2 & 10. Chess Moves | $125 million; $49 million
Cheskel Schwimmer Chess Builders are Safe $125 million of Valley National Bank backed by the lease on the Arches, a new 400,000 square foot residential development with 430 residential units at 198 East 135th Street in Mott Haven, Bronx. The funds consolidated construction debt from S3 Capital Partners and other previous loans.
Chess Builders simultaneously sold the land under the two-building development for $105 million to Haven Capital, which received $49 million of Goldman Sachs to make the purchase.
3. Takeover | $165 million
A group of investors led by Bruce Teitelbaum and MaryAnne Gilmartin received $165 million of Michael Dell’s MSD Capital to reclaim 44-02 Vernon Boulevard, a Long Island City waterfront site spanning more than 200,000 square feet, from the clutches of Robert Durst. The loan includes $119 million into new funds and follows a decade-long court battle sparked by Durst’s maneuver to seize the site. Teitelbaum recently bought out Durst’s mortgage on the property for $97 million. The site allows for 1.2 million square feet of residential development in its own right, although Teitelbaum has offered to rezone the site for a larger project with a renewable energy component.
4. Refi Rental | $144 million
The Brodsky Organization refinanced construction debt at 662 Pacific Street in Prospect Heights, Brooklyn, with $144 million of Apollo Global Real Estate Management. The loan replaces debt issued by Bank of New York Mellon for the new 28-story rental building with 312 units.
5. Arrival fund | $119 million
The CIM Group has received $119 million of JPMorgan Chase to complete its massive residential project at 85 Jay Street in Dumbo, Brooklyn, which is expected to have 730 condominiums and apartments, approximately 90,000 square feet of retail space and approximately 700 parking spaces. The developer announced in 2018 that JPMorgan had agreed to loan it $600 million. Scott Rechler’s RXR agreed last year to buy part of the project which included 320 rental units for $220 million.
6. Marvel at Midwood | $92 million
A company controlled by Baruch Singer obtained $92 million of Parkview Financial, a real estate investment trust, to complete a 10-story office and retail building covering 215,000 square feet at 1508 Coney Island Avenue in Midwood, Brooklyn. The building is pre-leased at 30%, according to the lender. Singer, who has a checkered past as a homeownerbought the site in 2006 for $27 million.
7. Gaga vs. Gowanus | $77 million
The Rabsky group of Simon Dushinsky and Isaac Rabinowitz scored $77 million in a $92 million construction financing from G4 Capital for a 526,000 square foot mixed-use project at 313-315 Bond Street in Gowanus. Developers bought the property from Yoel Goldman’s All Year Management company in 2019 for $95 million. Developers flocked to the Brooklyn neighborhood after the city backed a rezoning plan to create affordable housing on the banks of the Gowanus Canal.
8. Cash injection | $77 million
Joseph Simone has refinanced two 560,000 square foot office buildings at 1250 Waters Place in the Bronx’s Pelham Bay with $77 million of the insurer Ullico. The loan included $21 million in new funds and replaced Deutsche Bank as the lead lender. Simone Development Companies is headquartered in one of the buildings, which are mainly rented out to medical service providers.
9. Bankruptcy Bonanza | $68 million
David Bitricer’s Clipper Equity Received $67.5 million of Valley National Bank for its purchase of 2359 and 2360 Bedford Avenue in Flatbush, Brooklyn. The developer purchased the plots from Sears bankruptcy proceedings for a total of $91 million. A historic department store owned by the former major retailer sits adjacent to the sites, where Clipper plans to build two residential buildings totaling 456,000 square feet with 650 units.
Pat Ralph contributed reporting.