Retail and office development pre-leased to tenants, including Target and Marshalls
NEW YORK (May 23, 2017) — Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged $41.6 million in financing for the construction of Kingswood Plaza II, a 106,000-square-foot office and retail development located at 1715 East 13th Street in the Midwood section of Brooklyn, New York. The Mission Capital team of Jason Cohen, Ari Hirt, Steven Buchwald, Justin Hunt and David Behmoaras arranged the loan with a foreign bank on behalf of a joint venture between Infinity Real Estate and The Nightingale Group.
Located on the bustling Kings Highway retail corridor, Kingswood Plaza is ideally situated in the heart of Midwood, one of Brooklyn’s most populous and busiest neighborhoods. The development, which is 56-percent pre-leased to Target and Marshalls, will include three floors of professional/medical office space, in addition to its retail component.
“It is more challenging to get construction financing at this stage of the cycle, but lenders still have appetite for well-conceived projects in strong locations, and we generated multiple quotes on this deal from a wide range of lenders,” said Hirt. “We ultimately closed a very strong loan with a foreign bank, with high leverage and a low interest rate, attesting to the breadth of our lender contacts and the quality of the sponsor’s business plan.”
The property, a former two-story parking garage, is fully approved for the development and undergoing demolition. Located approximately a block from the subway station, the property provides convenient access to the B and Q trains, as well as several buses.
“The sponsors also own Kingswood Plaza I, a neighboring mixed-use property, and they have a keen understanding of the local market and the unmet demand for quality retail and office space. We had worked with Infinity in the past to secure acquisition financing for a property in Sheepshead Bay, and they recognized our unique ability to drum up lender interest – even at this stage of the cycle. With the retail pre-leased to investment-grade tenants, we were able to communicate the quality of the development to lenders, which enabled us to close a very favorable deal.” added Steven Buchwald.
Infinity Real Estate is a developer and operator of mixed-use real estate with more than 60 properties comprised of urban retail, boutique office, hospitality and over 1,000 rental apartments. The Nightingale Group is a privately held, vertically-integrated commercial real estate investment firm, whose portfolio spans over 11 million square feet of office and retail space across 22 states.
Mission Capital Advisors is extremely active at arranging construction financing, acquisition financing and refinancing for office, retail, hotel, multifamily, industrial and self-storage properties in markets across the country. In recent months, the firm has closed construction financing for hospitality and mixed-use properties in Illinois, Texas and Washington.