NEW YORK CITY—Contributing to the flurry of recent activity in Brooklyn, Meridian Capital Group has arranged a $142 million mortgage for the purchase of a class-A office property located on Vanderbilt avenue, in the Fort Greene section of Brooklyn. As previously reported, the financing was secured on behalf of RXR Realty. American Landmark Properties also took part in the deal.
The five-year loan features interest-only payments for the full term and was provided by a CMBS lender. The transaction was arranged by Meridian Capital managing directors Rael Gervis and Reuven Hellman, who are both based in the company's headquarters office here.
The 89% leased, 10-story office property totals 686,000 square feet and has been completely renovated with new mechanical and electrical systems as well as state-of-the-art elevators and modernized lobbies. The property is at 470 Vanderbilt Ave., a prime location in close proximity to Brooklyn's Barclay's Center and directly across from the Atlantic Yards Project.
“Given the strength of the sponsor and Meridian's very strong CMBS lender relationships, we were able to structure the financing around the ground lease and accommodate RXR Realty's time-of-the-essence closing requirements,” says Gervis. A company spokesperson did not respond to a request for additional comment.
Even though the evolution of Brooklyn from sleepy borough to a real estate hotbed has been taking place for some time, Kings County seems to have hit new highs recently. A new report from the New York Building Congress says Brooklyn led the city last year in the number of housing units authorized while a development parcel in the borough was recently sold for $40 million. Further, a renovation of Macy's Brooklyn is being considered and at least one credit tenant is said to be considering a move from Manhattan to Brooklyn.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
