NYC’s 10 Largest Outer Borough Loans in September 2021

Developers across the five boroughs are advancing big bets on the city’s pandemic recovery, and their lenders aren’t far behind.

Real estate lenders were particularly active in the city’s outer boroughs in September, with the 10 largest loans totaling $1.65 billion, nearing September 2019’s total of approximately $2 billion. To put the recovery in perspective, the biggest 10 loans in September 2020 added up to less than $500 million.

Queens and the Bronx led the way, each seeing four of the 10 largest loans for the month. See the complete list below:

1) Refi for The Jacx | Queens | $425 million

Tishman Speyer landed this cash-out refinancing deal from Bank of America for The Jacx, its 1.2 million-square-foot office and retail complex at 28-10 Queens Plaza South in Long Island City. The deal allowed the developer to consolidate existing construction loans of $272.2 million issued by Bank OZK and secure new debt of about $152.8 million, according to the loan document.

The loan allowed the developer to recoup about $40 million in equity, according to Commercial Observer. Construction of the 26-story, two-building complex was completed in 2019, and its office floors have been fully leased to tenants such as WeWork, NewYork-Presbyterian Hospital and Macy’s, although Macy’s is actively looking to sublease most of its space.

2) Last mile financing | Bronx | $319 million

A joint venture controlled by Turnbridge Equities and Dune Real Estate Partners secured this construction loan from KKR for its planned 1-million-square-foot distribution center on a five-parcel assemblage at 920, 940 and 980 East 149th Street in Port Morris, plus two non-numbered parcels on 141st Street near the Bruckner Expressway. The debt consists of a $224.5 million construction loan and $94.7 million in a new senior gap loan. In addition, the lender provided $61.8 million in financing to retire an existing loan originated by JPMorgan Chase, bringing the total amount to $381 million.

3) Financing for DoBro tower | Brooklyn | $275 million

Simon Dushinsky’s Rabsky Group and Joel Gluck’s Spencer Equity landed this construction loan from Madison Realty Capital for their mixed-use development at 625 and 635 Fulton Street in Downtown Brooklyn. The developers are also entitled to use certain development rights attached to the adjacent property at 80 Dekalb Avenue owned by Brookfield, according to property records.

The proposed 35-story building will feature more than 1,000 apartments along with 16,500 square feet of commercial space, according to filings. In addition to the construction loan, the developers have secured a $125 million refinancing from Madison Realty Capital to replace the existing loan issued by Bank Leumi last year, and a $50 million mezzanine loan, also from Madison. All together, the developers have received $450 million in financing from Madison Realty Capital for the project.

4) Refi for multifamily portfolio | Queens | $123 million

Rubin Schron’s Cammeby’s International Group scored this loan for 19 multifamily buildings in Ditmars Steinway. The properties are located at 20-53 18th Street; 20-31, 20-52 and 20-53 20th Street; 19-09, 20-01 and 24-05 21st Avenue; 20-12, 20-32 and 20-52 24th Street; 20-65 and 20-74 26th Street; 20-75 27th Street; 20-24, 20-25, 20-44, 20-55, 20-64 Crescent Street; and 20-65 Shore Boulevard.

5) Charter relocation | Bronx | $121 million

Charter school nonprofit KIPP NYC secured this loan from Zions Bancorporation for its project to construct a new facility on two parcels at 1504 and 1518-1530 Macombs Road in Mount Eden to relocate KIPP Elements Primary School at 338 East 146th Street in South Bronx and KIPP All Middle School at 2502 Lorillard Place in Belmont, according to Bronx Times. The debt package consists of $99.5 million in construction loans and a $21.9 million acquisition loan.

6) Charter expansion | Bronx | $102 million

KIPP NYC also secured this financing from Zions Bancorporation for 2720 Jerome Avenue in Fordham, where the nonprofit plans to construct a facility to open a new K-8 school, according to Bronx Times. The deal includes $89 million in construction loans and $13 million for acquisition.

7) Multifamily dev resumed | Bronx | $90 million

The Altmark Group secured this construction loan from Bank Leumi for its project to construct a 23-story, 135-unit project on three parcels at 227 Major Deegan Expressway, 2457 Third Avenue and a non-numbered parcel on East 134th Street in Port Morris. The developer, in partnership with Artimus Construction, filed applications for the project with the city in December 2019. Artimus’ Chief Financial Officer Yoav Haron signed loan documents as the authorized signatory.

8) Loan to buy time | Brooklyn | $85 million

Robert Levine’s RAL Companies secured this inventory loan from First Republic Bank for the unsold 89 condominium units at Quay Tower, a 30-story, 126-unit development in Brooklyn Heights. RAL constructed the waterfront tower at 50 Bridge Park Drive in partnership with Oliver’s Realty Group. Condo sales began in June 2018, but slowed during the pandemic. The inventory loan replaces existing loans to allow more time for the developers to sell the units.

9) Loan to build more apartments | Queens | $56 million

Werwaiss Properties secured this construction financing from JPMorgan Chase for its project to build a 20-story, 157-unit building at 25-36 and 27-10 Jackson Avenue in Long Island City. The proposed building would also feature nearly 10,000 square feet of retail space, according to plans filed with the city. The two-parcel lot, which fronts Jackson Avenue, 44th Drive and Thomson Avenue, has belonged to the Werwaiss family since 1974.

10) Flushing resi project gets financing | Queens | $52 million

Xiaorong Zhai’s Jade Century Properties landed this construction loan Centennial Bank for its project to develop two 20-story residential buildings at 131-04 40th Street in Flushing. Jade Century, in partnership with Peter Huang, are building the edifices, which will feature 386 residential condominiums atop a parking podium.

In addition to the construction loan, the developer received a $49 million loan from the same lender to replace existing loans, making the total amount at $101 million. These two buildings are the first phase of the 557,000-square-foot Flushing Point Plaza project.