Apollo Global Management and Witkoff are looking to score a $420 million construction loan for a high-rise project in Downtown Brooklyn, sources confirmed to The Real Deal.
The developers will use the loan to build a 51-story, 592-unit apartment tower at 565-589 Fulton Street. Green Street first reported the news.
Apollo and Witkoff have tapped Walker & Dunlop to help secure the financing.
The project was originally a joint development by RedSky Capital and JZ Capital, which began assembling the Downtown Brooklyn properties in 2012. But signs of trouble emerged in late 2019, when JZ Capital surprisingly announced that a portion of the firms’ shared portfolio — which had been valued at $443 million earlier that year — could be written down by between $50 million and $150 million.
The project’s $154.6 million loan, which was provided by Apollo, went into default in March 2020 and the property was marketed for sale.
Witkoff joined the project eight months later. It was initially reported at the time the firm had joined RedSky and JZ Capital as a development partner, but Witkoff claimed it was only hired as an advisor. RedSky and JZ Capital are no longer involved with the project, according to Green Street.
Permits to build the high rise, which will also include 37,000 square feet of commercial space, were filed in August. It will be designed by architecture firm Beyer Blinder Belle.
Witkoff did not return a request to comment.