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The multi-use complex will also include 12,000 square feet of additional retail space, 57 residential units totaling 39,000 square feet in size, 12,000 square feet of Class-A office space, and a 9,000-square-foot community facility. The mortgage, which covers 100% of hard costs, was arranged by Bergman and company vice president Yossi Orzel.
“This deal having three parts, leads to a very, very strong tenant with a lot of very strong interest in the remaining space from other good tenants,” Bergman said, acknowledging the higher degree of challenge in finding financing in light of the higher-interest-rate environment. “Without this pre-leasing it would’ve been a much more challenging deal,” he added. “With it, it definitely took some of the challenge out of it.”
The project’s developer, Seventh Street Development Group of Brooklyn, was cleared to break ground after securing a floating-rate loan running over a two-year term from New York-based Invictus Real Estate Partners, along with New York-based Maxim Capital Group and Beach Point Capital Management of Santa Monica, Calif.
“We were highly fortunate to be able to work with two outstanding partners on this transaction,” Rivkah Sontag-Tepler, co-founder and CEO of Seventh Street Development Group, said in a prepared statement. “Eastern Union showed a keen ability to source funding and to coordinate the overall process. In addition, Invictus Real Estate Partners demonstrated both flexibility as well as outstanding dealmaking skills.”
Bergman noted the team effort that made the deal possible amid a tougher lending climate: “In today’s marketplace, it’s challenging to secure a substantial construction loan for a commercial project,” he said. “Our success here is attributable to the quality of the Eastern Union team, and also to the fact that we were able to work with a well-organized developer who approached the process with reasonable expectations.”
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