Heritage Equity Partners has scored a $63 million loan for its planned 193-unit residential project at 564 St. Johns Place in Crown Heights, Brooklyn.
The deal was announced by lender Madison Realty Capital. This is the second loan that both sides have closed on the property. Madison provided a $23.5 million mortgage for the site in June 2014. That transaction valued the property at about $30 million.
“We’re pleased to provide capital that will help one of our repeat borrowers complete this well-located, high quality residential asset,” said Madison Co-Founder and Managing Partner Josh Zegen. “Crown Heights is increasingly attractive to many new residents, who are drawn to the close proximity to Prospect Park and reasonable housing prices as compared to Park Slope and Williamsburg. Construction of the building is far along, and we expect the project to be well-received when it hits the market.”
Heritage acquired a majority stake in the property through a $24 million deal with the Rabsky Group in 2014. The planned 163,598 s/f development was designed by architect Karl Fischer.
The site, which once contained a parking garage, will be converted into an eight-story residential building. The project has already been topped off and framing work has started at the lower floors. Once it’s built, the property will contain 19 studio apartments, 136 one-bedroom units, and 38 two-bedroom units.