New York real estate firm Hudson Companies has closed a 47.6 million dollar refinancing for the residential building the Clark in the borough of Brooklyn. The financing was provided by Benefit Street Partners. An advisory team from brokerage firm Newmark, comprising Daniel Fromm, Samuel Speciale and Lance Tillman, was responsible for arranging and structuring the loan.
The eight-storey building at 310 Clarkson Avenue in the Prospect Lefferts Gardens neighbourhood comprises a total of 170 residential units and approximately 7,700 square feet of commercial space on the ground floor. The residential complex is a mixed-income project containing rent-regulated and subsidised units alongside market-rate rental apartments.
Long-term financing structure following expiry of tax incentive
Hudson Companies completed the residential building in 2018. Construction of the project was carried out taking advantage of New York's now-expired 421-a tax abatement, which served to encourage the creation of affordable housing.
Chris Zedano, Managing Director at Hudson Companies, stated that the newly secured debt provides the property with a solid and stable foundation, ensuring lasting housing provision in Prospect Lefferts Gardens. He noted that the company built the Clark with the ambition of delivering high-quality, mixed-income housing to the neighbourhood, and remains fully committed to this mission.
Key facts for the 310 Clarkson Avenue property
- —170 units featuring a mix of market-rate, regulated and affordable rental apartments
- —Approximately 7,700 square feet of retail space on the ground floor of the building
- —Eight storeys in Brooklyn, Prospect Lefferts Gardens neighbourhood
- —Completed in 2018 under the former 421-a tax programme
With the closing of the transaction, Hudson Companies secures a reliable capital structure for the property, which is among the established residential schemes in the area. The provision of the loan by Benefit Street Partners underlines the ongoing interest of institutional lenders in stabilised multifamily assets across New York City.
