Development's dual attraction attracts Hudson finance.
The short-term construction loan will be used to purchase the land located along Shell Road, as well as commence construction.
Spencer Garfield, managing director for HRC, noted, "While many conventional lenders have backed away from financing for-sale housing in general, HRC evaluates each opportunity on its own merits.
"Although we are certainly more critical of for-sale housing, we liked the fact that the Shell Road project is a middle-market development that also works as a rental. The property itself is well located, and the sponsor is an experienced builder of residential condos in Brooklyn."
The property is located at the intersection of Shell Road and Avenue Z in Brooklyn and comprises one-third of an acre of vacant land. The property offers excellent access to the Belt Parkway and numerous subway stations. The proposed development plan calls for three residential floors containing 21 one- and two-bedroom units and 14 below-grade parking spaces. The Corcoran Group will market units for sale. "We have seen demand remain strong for well-priced, middle-market condominium units as an affordable alternative to pricier parts of Brooklyn, Manhattan and Queens. In addition, we believe that as the condominium market slows, the rental housing market will strengthen, and Shell Road works in both markets," Garfield said.
Other Brooklyn projects for which Hudson Realty Capital has provided either debt financing or an equity investment include:
* $6.12 million first mortgage loan secured by the 5.68-acre tract of land for a 10-unit subdivision with four waterfront homes and six water-view homes in the Mill Basin area.
* $6.5 million acquisition of two, four-story commercial buildings in the Clinton Hill neighborhood of Brooklyn, N.Y., through a partnership that will convert the commercial loft space into 32 residential condominiums. The site is adjacent to the Brooklyn communities of Park Slope, Prospect Heights and Fort Greene.
* $1.99 million loan for a development site comprised of 540,000 usable square feet, as well as approximately 1.44 million square feet of land underwater, located on the Gowanus canal.
* $14.25 million acquisition of a 224,000-square-foot industrial complex, comprised of 12 interconnected, multistory buildings, in the Sunset Park area of Brooklyn.
* $5.5 million mezzanine loan for condo development in downtown Brooklyn near the proposed Nets basketball arena.
"Brooklyn is the most populous borough with 30 %of the City's population there," Garfield said. "Further, after Manhattan, Brooklyn has the largest economy of the boroughs and we see sustained interest in both residential and commercial development and redevelopment to meet the needs of the area.
"HRC will continue to seek out unique opportunities with experienced, local sponsors in Brooklyn and in comparable submarkets that offer an exceptional loan-to-value ratio to deploy our capital."
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|Publication:||Real Estate Weekly|
|Date:||Dec 6, 2006|
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