Dealmaker: Walker & Dunlop Advises on $420M Brooklyn Recapitalization

(Photo credit: Steiner NYC)

Walker & Dunlop, Bethesda, Md., arranged the $420 million recapitalization of Hub, a 750-unit high-rise multifamily building in downtown Brooklyn, N.Y.

A Walker & Dunlop Capital Markets team led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno and Christopher de Raet, advised Steiner NYC, enabling the firm to buy out its equity partner, J.P. Morgan Asset Management.

The team advised Steiner NYC on the $420 million recapitalization and also arranged $62.5 million of preferred equity from Meadow Partners to support the purchase.

Appel noted the deal stood apart from traditional financings due to its complex structure, which involved an equity buyout and the sourcing of preferred equity to help capitalize the transaction. “We are excited to see Steiner gain full ownership of this landmark property,” he said.

Developed by Steiner, Hub, at 55 stories, was the tallest building in Brooklyn upon completion in 2018. The tower, at 333 Schermerhorn Street, offers studio, one-, and two-bedroom rentals with views of New York Harbor, the Manhattan skyline and multiple bridges.

Hub is located at the confluence of Boerum Hill, Fort Greene, Brooklyn Heights and Park Slope, with 12 subway lines in a two-block radius. Walker & Dunlop previously arranged the construction financing, J.P. Morgan Asset Management’s equity investment and institutional permanent financing in 2019.