HKS Real Estate Advisors has arranged a $24.5 million construction loan with M&T Bank for the development of a six-story, 149 multi-residential unit building called Brookview Commons to be built on the site of the Hearst Connecticut Media office building in Danbury, Connecticut.
The borrowers represent a partnership between two well established development companies – BRT General Corporation and The DiMarco Group, co-developers of the project – Brookview Commons (Phase 2) at 333 Main Street.
The building is located on a 3.3 acre lot in downtown Danbury — across the street from the Metro North train station and directly adjacent to the borrower’s existing 115 unit apartment complex called (Brookview Commons Phase 1) at 30 Crosby Street.
The two-year full recourse loan features a 30-day Libor+225, two six-month extensions and a 75 percent LTC, 70 percent LTV.
“BRT and the DiMarco Group have a solid history of collaborating on other large scale multi-residential assets in the state,” said HKS Real Estate Advisors’ John Harrington who negotiated the loan.
“Considering the strength, reputation and the experience of the borrowers, M&T Bank was very confident in the people standing behind the project. They extended a very favorable, competitive and well-structured loan for the demolition and site prep scheduling, and they are looking forward to building the relationship.”
According to Harrington, who has facilitated other transactions for this developer in the past on similar sized projects, the COVID pandemic created several hurdles to completing the deal.
“The driving force for getting this closed was a collective decision from both M&T Bank and the developers, who were equally confident and in agreement that the project was more than sustainable during the days ahead,” said Harrington.
“We are very pleased with how HKS and M&T have come through for us during these uncertain times,” said BRT’s Daniel Bertram. “This project is part of an ongoing process for the gentrification of the downtown and it’s an exciting next step.”
The proposed development project will feature: 18 studio units, 80 one bedroom one bath units, 23 two bedroom and one bath, and 24 two-bedroom two bath units. The development will feature a high amenity package, with health facility and pool, and a walking bridge connecting the two properties.