Cusp closings: The largest loan actions closing out 2022, kicking off 2023

JPMorgan, Truist, UBS remain active on originations during winter holiday season.

The final week of December 2022 and first week of January 2023 – while quiet lending periods for some – marked some sizable loan activity from JPMorgan Chase, Truist Bank and UBS, among other commercial real estate debt financiers.

Sweetening the deal

JPMorgan led the pack in volume by providing $365 million of financing to Two Trees Management for two residential developments linked to the Domino Sugar Refinery in Brooklyn’s Williamsburg neighborhood.

The December 29 deal consisted of two components: a $184 million construction loan for the two new apartment towers at 364 Kent Avenue and a $118.9 million construction loan for Domino Development Partners as part of the project.

As noted by The Real Deal, Two Trees also received $60 million in project loans as part of the deal that will add 600 total units across the Williamsburg apartment towers, which will top out at 50 and 55 stories, respectively. Project completion is anticipated for 2025.

Bet on Brooklyn

The New York City Housing Development Corporation got into the year-end loan action by providing $224.6 million of financing for the second phase of Phillips Houses’ affordable housing development in Brooklyn’s Cypress Hills neighborhood.

Announced December 30 and first tracked by PincusCo, the construction loan will be used to create a 436-unit apartment complex at 254 Euclid Avenue. The new project marked the third Phipps property between Fulton Street and Atlantic Avenue slated for development in the coming quarters, including the Atlantic Chestnut, which was provided $217 million in construction loans in 2021.

The latest affordable housing asset in the Phipps portfolio arrived on the tailwinds of Cypress Hill’s rezoning in 2016 driven by former New York City Mayor Bill de Blasio as part of his initiatives to increase affordable housing stock across the borough.

Backing Brickell

Related Group remained active through the winter holiday weeks in a sunnier locale by securing a $164 million construction loan for the development of its new rental tower in Miami’s Brickell neighborhood.

Truist Bank provided the debt for the January 4 deal which will help fund a portion of Related’s ambitious mixed-use project at 444 Brickell Avenue. Related’s full plans include the 44-story, 506-unit apartment tower as well as an 82-story hotel and residential tower and 75-story Baccarat-branded condominium tower.

Construction for 444 Brickell Tower II is anticipated to start this month. The New York-based real estate investor and manager has continued growing its Miami presence alongside other peers who view the region as one ripe with office and multifamily opportunities in the current environment

Office shopping spree

Workspace Property Trust is expanding its office portfolio with six new assets after securing a $142.1 million acquisition loan from UBS.

The Horsham, Pennsylvania-based sponsor acquired a six-building, 1 million-square-foot package spanning Chicago, Cincinnati, Dallas, Greensboro, North Carolina, and San Jose, California on December 28.

Newmark helped arrange the loan, with Christopher Kramer, Benjamin Kroll, Jordan Roeschlaub, Nick Scribani and Dustin Stolly negotiating the financing on Workspace’s behalf. As part of the acquisition, the original seller, Griffin Realty, will be retaining minority ownership of the portfolio.

Capitol at the ready

Rounding out the list of winter holiday season lenders is the District of Columbia Housing Finance Agency, which provided a $125 million financing package for a pair of Washington, DC, multifamily developments at the start of January.

The agency’s loan included $48.8 million in tax-exempt bonds and $41.5 million in federal low-income housing tax credit equity for the sponsorship team, which included Equity Plus Manager LLC, Gilbane Development Company, Housing Help Plus and MED Developers.

The Department of Housing and Community Development in Washington, DC, supplied a $37.6 million Housing Production Trust Fund loan for Belmont Crossing, the 275-unit garden-style apartment project featured in the deal.

DCHFA also provided $20.5 million in tax-exempt bonds and underwrote $14.1 million in low-income housing tax credit equity to Neighborhood Development Company to develop 49 affordable units at 3450 Eads Street. DHCD provided an additional $18.9 million HPTF loan for the 49-unit project.

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