Dealmaker: JLL Arranges $42M for Brooklyn Condo Construction

JLL, Chicago, secured $42.1 million in construction financing for a mixed-use residential condominium project in Brooklyn Heights, N.Y.

Bank of the Ozarks, Little Rock, Ark. provided the three-year loan.

JLL also raised joint venture equity from a fund managed by The Davis Cos., Boston, for the partnership between Lonicera Partners, Brooklyn, and Orange Management, Manhattan. Managing Directors Jonathan Schwartz and Keith Kurland and Executive Vice President Mark Fisher led the team on both financing and equity placements.

The 86,000-square-foot property at 70 Schermerhorn Street will include 59 residential units and 3,000 rentable square feet of retail space.

“High-quality sponsors continue to find lenders who will give them favorable terms for projects like 70 Schermerhorn Street,” said Schwartz. “As the city center continues to expand, developers and residents are taking advantage of relative discounts in areas like Brooklyn Heights, driving demand for luxury condos.”

Kurland said lenders agree with investors when it comes to demand for high-end New York properties. “Underwriting remains disciplined, but high-end developments will continue to pique lender interest,” he said.

Schwartz said the building, currently a 32,000-square-foot health center on the border of Brooklyn Heights and downtown Brooklyn, sits adjacent to an area subject to strict landmark protection, making it a rare new development opportunity in the area.