Muss Development and HomeFed Corporation have refinanced their leasehold on the office portion of Brooklyn Renaissance Plaza with a $198.3 million CMBS loan from CGA Capital.
Berkadia announced the financing for the office condominium unit at 345 Adams Street. The 465,000 s/f office is fully leased to the Kings County District Attorney, with 10.5 years remaining on the lease.
Berkadia senior managing director Mark Vogel and director Dan Geuther secured the permanent refinancing through CGA Capital Corporation. The 21.5-year loan features a 4.47 percent fixed interest rate.
“We are extremely pleased to announce this deal, which resulted from an extensive collaborative effort between the borrower group, Berkadia, and CGA Capital,” said Vogel.
“In seeking to obtain a loan duration of over 20 years, we were presented with two significant challenges: the ground lease payment will reset to unknown market rates in 2021 and 2031, and the KCDA lease expires in 2028.”
“Working with CGA, we were able to craft a custom credit solution that enabled us to underwrite through these significant risk events and accomplish the client’s objective of long-term fixed-rate financing,” Geuther added.
“The excellent location and Class A nature of the property, combined with the mission critical function of the space for KCDA with its proximity to the downtown Brooklyn courthouses, was critical to this transaction coming to fruition.”
The office condominium is part of an overall 1.4-million-square-foot complex that includes the 667-room New York Marriott at the Brooklyn Bridge hotel and a 1,100-car underground garage.