SL Development has secured a $53.5 million first mortgage loan for its acquisition of 722 Metropolitan Avenue in Williamsburg, Brooklyn.
The property, a 90,000 s/f development site, previously contained an umbrella factory that started operations in 1933. SL Development plans to build a 69-unit luxury condominium building with 20,000 s/f of retail space. Madison Realty Capital served as the lender in the transaction.
“This was an attractive financing opportunity for MRC,” said Josh Zegen, Madison’s managing principal. “Our substantial investment experience throughout the New York City market allowed us to quickly understand the borrower’s needs and provide a single source of financing, which will ultimately facilitate a smooth execution of the business plan.”
SL Development bought the property earlier this month. The sale closed at a purchase price of $23 million. According to a previous report from the Real Deal, the owner, Barnett Brickner, had difficulty selling the property. It went into contract twice but the deals were derailed by the L train shutdown and opposition from artist tenants.
JLL’s Aaron Appel, Michael Diaz, and Alex Witt sourced the deal to MRC and represented the borrower in the transaction.
SL Development expects to start construction later this month. The project is scheduled for completion in July 2019.