Megalith, Urban Realty, Carlyle to Build 2 M-F Projects in Brooklyn for $100M
- May 29, 2014
A joint venture between Megalith Capital Management and Urban Realty has partnered with an affiliate of The Carlyle Group in building two luxury residences in the DUMBO neighborhood of Brooklyn, N.Y.
The partnership closed on construction financing with Bank Leumi USA for more than $100 million for the development of 200 Water St. and 177 Front St.
“We are pleased to have a new equity partner and construction lender as we move forward with our continued goal to create new condominium residences and rental apartments within the context and full recognition of this emerging New York City neighborhood,” said Sam Sidhu, CEO of Megalith Capital management in a news release.
According to The Real Deal, The Carlyle Group bought the two contiguous parcels in DUMBO from Megalith Capital Management for a total of $30.6 million — the same amount the sites changed hands for last year. Over a year ago, the land was part of a sizable portfolio belonging to the Jehovah’s Witnesses. As part of the organization’s plan to relocate upstate, the Jehovah’s Witnesses sold it to Megalith for $30.6 million in April.
The project will convert an existing three-story warehouse space at 200 Water, formerly occupied by Brillo Manufacturing, into a boutique luxury condominium and build two extra penthouse stories on top of the existing four-story structure. The property will be made up of mainly large three-bedroom units with amenities, including public and private outdoor space, a doorman and a fitness center. 177 Front St., currently a vacant lot, will be constructed into a 105-unit rental building containing a mix of one- two- and three- bedroom apartments with all of the same amenities as Water Street, plus a bike room and a children’s playroom.
Ari Aufgang of Aufgang Architects has been retained to design the structure.
Both addresses are located in Brooklyn’s most thriving neighborhoods known as DUMBO (Down Under the Manhattan Bridge Overpass). The area has NYC’s highest concentration of technology firms by neighborhood and offers impressive views of the Manhattan skyline, a cording to the news release.
“There is high demand for residential housing in this area given the strong transportation access, proximity to Manhattan and the established and growing technology industry in the neighborhood,” said a spokesperson for the companies.