JV Obtains Mezzanine Loan for Brooklyn Project

Bluestone Group has provided $8 million in financing for the mixed-use property that Cornell Realty Management and LIVWRK are co-developing in Williamsburg.
206 Kent Ave. Rendering courtesy of Bluestone Group

Bluestone Group has joined with Madison Realty Capital to finance 200 Kent Ave., a more than 117,000-square-foot retail and office development that has recently topped out in the Williamsburg neighborhood of Brooklyn, N.Y.

The direct lender has provided $8 million in mezzanine financing, which supplements a $64 million loan that Madison Realty secured in November 2017. Cornell Realty Management and LIVWRK are co-developing the project, Commercial Property Executive has independently confirmed, after these firms’ involvement was first reported by The Real Deal.

Grocery chain Trader Joe’s has signed a lease to anchor the 50,000-square-foot retail portion, which has over 600 feet of frontage, according to a prepared statement by Bluestone Group. The six-story structure will also include roughly 22,000 square feet of office and restaurant space, and more than 45,000 square feet of parking.

Evolving neighborhood

The upcoming commercial property is located near the East River waterfront and three blocks from the bustling Bedford Avenue. The site is also within walking distance of the Bedford Avenue subway stop, served by the L line that connects Brooklyn to Manhattan. Popular destinations nearby include Bushwick Inlet Park and McCarren Park.

Brooklyn-based developer LIVWRK is also redeveloping the neighboring warehouse complex at 184 Kent Ave., in partnership with Kushner Cos. The project will give rise to a 338-unit luxury condo building called Austin Nichols House.

Just down the street, developer Two Trees is transforming the waterfront site of the former Domino Sugar Factory into a residential mega-development that is expected to add around 2,800 new apartments and 4 million square feet of space upon completion. The 522-unit first building, 325 Kent, opened last year. A second building at 260 Kent Ave. that will offer 330 rental units is underway.