Madison Realty Capital (MRC) announced the closing of a $297 million construction loan for River Park, a three-building mixed-use development in Cobble Hill by Fortis Property Group.
The development will include 172 luxury condominium units, 66,900 s/f of community facility space, and 328 parking spaces.
MRC, an institutionally-backed real estate investment firm, provided the loan for the project on three adjacent sites that formerly comprised the Long Island College Hospital (LICH) medical campus.
“We are very excited to be working with Fortis again on the completion of these Cobble Hill buildings,” said Josh Zegen, Co-Founder and Managing Principal of MRC.
“We believe that the limited product in the Cobble Hill/Brooklyn Heights market combined with the exceptional product Fortis will deliver will make this a marquis project for Brooklyn.”
Jonathan Landau, CEO of Fortis Property Group, added, “We are excited to proceed with the construction of our beautiful River Park project.
“Working together with Josh Zegen and MRC enabled us to achieve excellent leverage at competitive pricing for this landmark development. River Park 1, 2 and 5 will anchor the new Brooklyn Waterfront District and bring a new level of luxury living to Cobble Hill.”
Fortis agreed in 2015 to acquire 18 buildings that comprised the former LICH campus for $240 million through a competitive RFP process run by the seller, the State University of New York.
Fortis financed the first phase of the acquisition with a $107.25 million bridge loan from MRC.
The new loan proceeds from MRC will be used to retire the previous bridge loan and complete construction of the three-luxury residential condominium buildings, including a waterfront tower located at 350 Hicks Street (1 River Park); a high-rise condominium tower located at 95 Pacific Street (2 River Park); and a contextual condominium building located at 349 Henry Street/112 Pacific Street (5 River Park).