Standard Real Estate Investments, LP (Standard), a national minority-owned real estate private equity firm, today announced its first foray into the New York City real estate market with the closing of an equity investment in a mixed-use development project located at 1333 Broadway in the Bushwick section of Brooklyn, NY.
JLL Capital Markets arranged the majority stake and simultaneously arranged financing for the construction of the business with Santander. JLL represented sponsor, Ekstein Tolbert Development, which will work with Standard to construct a 107-unit, 20-story mixed-use building on the 30,766 square foot site. The development has a total project cost of $76 million.
“Acquiring the site and developing a mixed-use property with a feasible residential component as a significant part of the project fits perfectly with our investment philosophy,” said Jerome Nichols, Founder and Chairman of Standard. . “We look forward to working closely with Erik Ekstein and Kevin Tolbert, principals of Ekstein Tolbert Development, to bring 1333 Broadway to fruition as we focus on improving access to capital for minority-owned developers. and women while creating much-needed affordable and market-rate prices. lodging.”
1333 Broadway is located at the gates of Bushwick’s Gate Avenue station, providing immediate access to the J and Z trains with transportation to Williamsburg and downtown Manhattan. The building will include premier retail on the ground floor and a three-story commercial component, already leased to Empire Rehearsal Studios, in addition to 15 floors of housing – 30% affordable rental apartments and 70% on the market price – offering stunning views of the city.
Units will include a mix of bachelor, one-, two-, and three-bedroom units, ideal for residents who work from home or also want the ability to quickly commute to Manhattan or other parts of Brooklyn. The facilities will include a gym and laundry room in the basement, bicycle storage, parcel storage and 50 parking spaces located in the basement and on the first floor.
The development will anchor the northwest corner of Broadway and Linden Street in a rapidly transforming neighborhood that has become a hotbed for creative offices and media tenants. The property will receive a 35-year 421-A tax abatement and a 25-year ICAP tax abatement for commercial space.
“We are thrilled to be part of this development in the heart of Bushwick, which has been transformed from its industrial roots into a cultural hub that is home to numerous breweries and manufacturing uses as well as galleries, restaurants and studios,” continued Mr. Nichols.
The JLL Capital Markets team representing the borrower for the equity investment was led by Senior Managing Directors Rob Hinckley and Jeffrey Julien, Senior Director Steve Rutman, Director Nicco Lupo and Vice President Patrick Madigan. The build finance effort was led by Managing Director Peter Rotchford, Senior Managing Director Christopher Peck and Vice President Christopher Pratt.
“Brooklyn, and really the big city, has certainly had a huge V-shaped recovery as the apartment vacancy rate once again hovers below two percent, and 1333 Broadway will hit the market at a time when the demand continues to increase in transit, newly built and well-appointed Brooklyn properties,” Hinckley said. “It will be a very attractive property offering much-needed new commercial space, a fair market and affordable housing.”
In addition to Standard’s investment in the 1333 Broadway development, the company is currently targeting an additional $300 million in new development projects in 2022. The investment also follows Standard’s acquisition in January of a set of seven properties in Ward 8 of Washington DC, adjacent to St. Elizabeth’s East Campus. The two-acre site includes the south entrance to the Congress Heights subway station. Trammell Crow Company, one of the nation’s largest development and investment companies, will execute the lease and development of the site’s 240,000 square foot office element with Standard. NHT Communities will develop 179 apartments for district residents earning between 30 and 80 percent of the region’s median income.
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