Holliday Fenoglio Fowler secured $51.175 in first mortgage financing for 1300 Flushing Avenue, a six-story warehouse and distribution building that will be converted into Class A creative office space in Brooklyn’s Bushwick neighborhood.
The JV partners purchased the industrial property at 1300 Flushing Avenue for $46 million in April and plan to convert it to a Class A mixed-use office building to be called 455 Jefferson.
HFF worked on behalf of the borrower, a joint venture partnership between Lincoln Property Company and Alcion Ventures, to place the three-year, floating-rate loan with two one-year extension options with Mack Real Estate Credit Strategies.
Loan proceeds will be used to acquire and reposition the asset. Financing for this project is provided by Mack Real Estate Credit Strategies.
The HFF debt placement team representing the borrower was led by senior managing director Doug Bond, managing director Mark Wintner and associate director Christopher Peck.
The former Bushwick coffee roasting warehouse will be renovated and repositioned as “The Jefferson” the best-in-class creative office asset in the burgeoning Bushwick creative arts community.
“The Jefferson is a once in a generation opportunity for TAMI tenants searching for an exceptional Brooklyn branding opportunity” said Jim Stein, senior vice president of Lincoln’s New York office, who represented the buyer and along with Tom Murray will serve as the building’s leasing agent.
“Bushwick, and particularly this neighborhood, is a vibrant area filled with new bars, restaurants, cafes, live music venues and world renowned street art. The New York tech industry is still in its first phase and will continue to grow.
“Given that many TAMI professionals now live in Brooklyn, managers will have a competitive advantage in attracting sought after employees by offering the convenience of working near their homes versus commuting to Manhattan.”
“Office rents in Midtown South, longtime home to New York’s creative tenancy have substantially increased since 2010,” said Mark Potter, partner of Alcion Ventures.
“TAMI tenants searching for suitable Manhattan office space are often faced with few choices and substandard building conditions. The Jefferson, will offer tenants fully renovated creative office space.”
“Eligible tenants can further benefit by reducing their occupancy costs by as much as $10 to $15 per square foot through incentive programs like the Relocation and Employment Assistance Program (REAP), making corporate relocations to Brooklyn both convenient for employees and desirable for executives,” added Murray.
John Cappellano of Lincoln will oversee the renovation of 455 Jefferson St. which will include all new mechanical systems, windows, elevators, lobby, bathrooms and retail. Thomas Leeser has been chosen as building architect and Carrickmore will be the contractor.
Jared Horowitz, Executive Managing Director of Newmark Grubb Knight Frank, represented seller Black Street (2010) LLC.