HFF secures $26.9 million financing for Brooklyn office acquisition and conversion
NEW YORK, NY – September 8, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $26.9 million in acquisition and construction financing for 314 Scholes Street, a three-building continuous industrial complex totaling 97,475 square feet that is being converted into creative office space in Brooklyn’s Williamsburg neighborhood.
HFF worked on behalf of the borrower, The Hudson Companies (Hudson), to arrange the five-year, floating-rate loan through M&T Bank. Loan proceeds were used to acquire the property and will fund the repositioning of the asset into a Class A creative office and retail property designed by S9 Architects in order to capitalize on the growing demand for office in Williamsburg’s live-work-play environment.
The two one-story buildings and one three-story building are interconnected and currently used as warehouse space. After the conversion, the Class A complex will consist of 83,211 square feet of creative office and 14,543 square feet of retail space. The borrower is adding a full-service rooftop bar and restaurant to the top of the three-story second building, which will have protected 360-degree views from the rooftop and the top two floors. In total, the complex will have 10,697 square feet of ground-floor and rooftop courtyards. The project is expected to be completed in 2018. 314 Scholes Street is located in the East Williamsburg neighborhood of Brooklyn and blocks from the Montrose Avenue, Morgan Avenue and Grand Street L subway stations, providing easy access into Manhattan.
The HFF debt placement team representing the borrower was led by managing director Christopher Peck and analyst Rory Shepard.
“It was a privilege to work alongside Hudson to procure financing that will allow the them to, along with ABS Partners Real Estate, re-imagine 314 Scholes into a unique creative office property,” Peck said. “The boutique size floorplates cater to a diverse mix of tenants and the expansive retail will serve as a true amenity to the Brooklyn community.”
About The Hudson Companies
The Hudson Companies (Hudson) is a private real estate development company started in 1986 that has grown into a leading developer of new housing for all market segments in the New York metropolitan area. Hudson’s principals have a hands-on approach to managing the details of the development process from property acquisition, project finance and design, through construction and marketing. The firm is experienced in both new construction and rehabilitation, and is active across the luxury, affordable and institutional housing markets. Learn more at hudsoninc.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.