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Deals & Dealmakers

Cheskie Wesiz’s CW Realty and Yaakov Klein Refinance Construction Debt on The Kent House

CW Realty today announced $115 million of new financing on the Kent House. Yaakov Klein, who holds the leasehold interest in the property, closed on a $53-million loan from Bank of America last week. CW, which holds the property’s fee interest, received a 35-year, $61.7-million loan from Nuveen TIAA in July.

CW’s permanent financing fully paid off the Prophet Capital-originated construction loan on the property, which had been purchased by Invictus prior to the onset of COVID-19.

The 140,000-square-foot, mixed use building spans Kent Avenue from Metropolitan Avenue to North 3rd Street in prime North Williamsburg. It features 96 rental apartments, 140 parking spots and 31,000 square feet of retail space. The residential rents range from $4,950 for a one-bedroom unit to $8,300 for a large, three-bedroom apartment with a private balcony and unobstructed city views. 

“For the past few years, we’ve worked very hard and maintained our focus on moving past the various challenges brought on by the COVID-19 pandemic. With great care and persistence, we’ve achieved many new milestones at both the Kent House and our broader portfolio, and we’re extremely proud of our continued ability to bring quality residential product to north Brooklyn,” said CW Realty Director of Acquisitions and Finance Shia Weisz.

Earlier this year, CW signed a 13,000-square-foot lease with Showfields NY for the majority of the Kent Avenue frontage, which faces Trader Joe’s at the North 3rd Street corner. Showfields had its grand opening in October and has created a major retail buzz in the area. 

Waterway Capital and Skyline Capital arranged the financing from Nuveen TIAA for the loan on the fee interest. Leah Paskes’s Landstone Capital arranged the financing from Bank of America on the leasehold. 

Tom Sargent, president of Waterway Capital stated: “Waterway Capital LLC (“Waterway”) is pleased to have worked with CW Realty on the ground lease refinancing package for the Multifamily project at 187 Kent Avenue  Brooklyn, NY. The Kent House project is an outstanding property in the heart of the Williamsburg section of Brooklyn. Waterway is a broker dealer and investment bank providing customized financing solutions for developers and owners of commercial real estate with a specialization in the securitized ground lease and net lease fixed income capital markets. Waterway Capital LLC is a registered member of FINRA and the SEC.”

CW has been developing luxury residential real estate in prime locations in Brooklyn & Queens since 2005. CW’s most recent deals include a $44-million construction loan with Cross River on 1499 Bedford Avenue. The company also recently completed “Casa Dumbo” at 68 Gold Street in DUMBO. 

North Williamsburg has become extremely sought after in the last few years with new business, parks and new construction. Just a block away from the Kent House, Two Trees is planning to build a public beach, creating more value and making the area even more desirable to residents.

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