By Rayna Katz, GlobeSt
RXR Realty and joint venture partner Westbrook Partners have landed about $162 million in first mortgage financing to acquire a sizeable chunk of property across from the Brooklyn Navy Yard. Loan proceeds were used to acquire the property and will fund the repositioning of the asset into a creative loft office property, capitalizing on the growing demand for office in the Navy Yard submarket.
Located in the Clinton Hill section of Brooklyn, the site is a 10-building, 665,000-square-foot mixed-use complex known as the Hall Street Complex. The seller was a joint venture between Industry City Associates and Cammeby’s, according to industry data.
Holliday Fenoglio Fowler worked on behalf of the borrower, arranging the floating-rate loan through Starwood Property Trust. The HFF debt placement team representing the borrower was led by Michael Tepedino, Steven Klein and Christopher Peck.
The Hall Street Complex spans an entire city block, bordered by Flushing and Park Avenues and Ryerson and Hall Streets, in the desirable Clinton Hill neighborhood of Brooklyn. In addition to its close proximity to the Navy Yard, the site is two blocks from the Pratt Institute of Technology and adjacent to the Brooklyn Queens Expressway.
The property features 14’ ceiling heights, 4,500-28,000-square-foot flexible floorplates and full floor or full building presence in a variety of sizes not typically available to small and mid-size tenants. Once the conversion is completed, the property will offer door-to-door shuttle service to the area subways, an amenity few other properties in the area offer.
“The Hall Street Complex offers a fantastic canvas for a best-in-class creative office environment,” declares Peck. “RXR and Westbrook are uniquely equipped to reimagine the asset to accommodate the growing demand of Brooklyn-based tenants looking to grow within the market, as well as Manhattan-based companies eager to plant their flag where many of their employees live, work and play.”
Adds Klein, “The wide range of floor plates, high ceilings and future amenities will both attract and retain tenants, a dynamic that is perfectly suited for the burgeoning Brooklyn office market.”
The RXR platform manages 71 commercial real estate properties and investments with an aggregate gross asset value of approximately $20.5 billion, comprising approximately 31.4 million square feet of commercial properties, inclusive of approximately 6.0 million square feet of buildings securing debt and preferred equity investments, a multi-family residential portfolio of approximately 2,500 units under operation or development, and control of development rights for an additional approximately 3,700 multi-family and for sale units in the New York Metropolitan area as of June 30, 2019. Gross asset value compiled by RXR Realty in accordance with company fair value measurement policy and is comprised of capital invested by RXR and its partners, as well as leverage.