Brooklyn Mixed-Use Asset Scores $76M Acquisition Loan
- Sep 25, 2019
A partnership that includes New York City developer Isaac Hager has borrowed $76 million to acquire a recently constructed hotel and residential property in downtown Brooklyn. The 12-story, 177,966-square-foot asset at 85 Flatbush Ave. includes the boutique, 176-key The Tillary Hotel and an attached 64-unit luxury apartment component at 60 Duffield St.
Madison Realty Capital provided the financing package, which includes both an MRC senior loan plus mezzanine financing from Bluestone Group. A statement by MRC identifies the buyer as a partnership of Hager, founder of Cornell Realty Management, and Lipa Rubin, who is described as an experienced regional developer.
Cornell Realty Management and LIVWRK are co-developing 200 Kent Ave., a more than 117,000-square-foot retail and office project in Brooklyn’s Williamsburg neighborhood. MCR secured a $64 million loan for the development in 2017, and this past June, Bluestone Group joined with MCR to provide $8 million in mezzanine financing.
Completed in 2016 and developed by The Chetrit Group and Read Property Group, the property is at the corner of Flatbush Avenue Extension and Tillary Street, off the base of the Manhattan Bridge and within walking distance of Barclays Center, home of the Brooklyn Nets. The hotel and residential buildings have separate entrances and function independently, albeit with some shared amenities, including a fitness center, a cafe, business and meeting centers, parking spaces, multiple roof decks and outdoor space.
The Tillary, which is designed with an Art Deco and industrial aesthetic, also features a restaurant, rooftop bar and ballroom space. Chetrit scored an $82.5 million loan to refinance the mixed-use asset in April 2018, according to the Commercial Observer.