PCCP, LLC PROVIDES $152 MILLION SENIOR LOAN FOR THE RECAPITALIZATION AND LEASE-UP OF CLASS A CREATIVE OFFICE PROPERTY IN DOWNTOWN BROOKLYN, NY
New York, NY, February 28, 2019 – PCCP, LLC announced it provided a $152 million senior loan for the recapitalization and lease-up of 41 Flatbush Avenue in downtown Brooklyn, NY. Also known as The Pioneer Building, the property was a former warehouse/storage facility that was recently converted into Class A creative office space. The ownership, a venture of Quinlan Development Group and Building and Land Technology (BLT) acquired the property in 2014. Since that time, it has invested in excess of $30 million in transformative capital improvements and is in active lease-up with over a half dozen tenants already.
Developed in 1896, The Pioneer Building originally served as the headquarters of an auction house with additional storage space. Quinlan and BLT transformed the building into an approximately 270,000-square-foot, 10-story office asset that includes ground floor retail space. The property features historical, neoclassical architecture, a limestone-clad façade, efficient floorplates that are approximately 27,000 square feet, and high, 13-foot slab-to-slab ceilings. As part of the renovation plan, Quinlan and BLT updated the building’s façade and installed elevators, a modern, tenant-controlled HVAC system, windows and a landscaped rooftop amenity.
“PCCP sees this loan as a favorable opportunity given the experience of Quinlan and BLT on similar infill projects,” said John Randall, partner with PCCP. “This is an exciting, transit-oriented, newly renovated creative asset that provides tenants with a value alternative to buildings in neighboring parts of Brooklyn and Manhattan. As New York City continues to gain momentum as a technology hub, Brooklyn is a borough that offers tenants lower rents, a young tech-savvy workforce, and a variety of retail and amenities.”
The property is well-located in downtown Brooklyn within a five-minute walk of 12 subway lines as well as the Long Island Railroad. Spurred by a city initiative in 2004, the downtown area is experiencing an estimated $11 billion of private investment across its residential, commercial and institutional sectors, transforming it into a live, work, play neighborhood. There are more than 20,000 new and planned residential units set to be delivered to the area, catering to downtown Brooklyn’s growing young professional demographic.
Quinlan Development Group is a private real estate and investment company based in Manhattan. Started in 1971, the family firm has renovated and invested in over 30 properties of different asset types, comprising over two million square feet. Aside from 41 Flatbush, Quinlan has three active developments in New York, two of which are in Brooklyn and one of which is in Manhattan. Stamford, CT-based Building and Land Technology, is a vertically integrated real estate development, property management and private equity firm that has owned and managed over 25 million square feet of properties across 26 states.