Naftali Group and Access Industries close $385 million construction loan for 470 Kent Avenue in Williamsburg

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Naftali Group, a leading New York-based private global real estate development and investment firm, which is partnering with Access Industries, a US-based industry group with global strategic investments, today announced a major construction loan for the transformative Williamsburg waterfront development at 470 Kent Avenue. Together, the companies have closed a $385 million construction financial package for the Brooklyn property, which will include three buildings reaching up to 22 stories at 470 Kent Avenue with approximately more than 645,000 square feet of space and 561 units. in total between them, as well as approximately 19,000 square feet of commercial space in all buildings. The project has already started and is expected to be completed in 2025.
The $385 million financing package consists of a $310 million first mortgage loan provided by Bank OZK and a $75 million mezzanine financing provided by Barings.
“We are delighted to partner with Access Industries on this very special project and have the confidence of our lenders,” said Miki Naftali, CEO and Chairman of Naftali Group. “We have shown our support and confidence in New York’s future during COVID and continue to do so. All of our projects are well received and we are very excited to introduce a waterfront lifestyle to future residences in this highly desirable Williamsburg location. Based on our proven track record, we are committed to making long-term investments in New York, as evidenced by our three record-breaking buildings over the past two years, including the acquisition of 470 Kent in 2020.”
“The Naftali Group consistently designs and builds the highest quality residential buildings in Manhattan, and we are thrilled to partner with them at 470 Kent Avenue,” said Jonah Sonnenborn, Real Estate Manager, Access Industries. “This project will transform and bring new life to the Williamsburg waterfront, and we are excited to work with Naftali and our lenders to bring this vision to fruition.”
“Barings is pleased to provide funding to the high caliber team at Naftali Group and Access Industries. We share the sponsor’s belief in the New York market and are delighted to support its long-term investment in Brooklyn,” said Jonathan Neff, managing director of Barings Real Estate. “This investment represented an attractive opportunity based on the strong sponsorship, the quality of the trophy and the irreplaceable location. Amid an extremely challenging environment, Barings is committed to providing creative financing solutions to premier sponsors and construction projects across the United States.
470 Kent – ​​which Naftali Group acquired in 2020 as one of the last developable sites on the Williamsburg waterfront – will transform a rare plot overlooking the East River. Adjacent to the Brooklyn Navy Yard and located at the prominent corner of Kent Avenue between South 11th Street and Division Avenue in South Williamsburg, 470 Kent is within walking distance of the waterfront, which offers shuttle services to and from Manhattan in less than 20 minutes from the South Williamsburg Ferry Terminal, as well as many subway lines including the J, M, and Z trains. The Williamsburg Bridge, with easy access to Manhattan, is nearby.
One of New York’s most active developers, the Naftali Group has successfully launched and sold three luxury condo projects in Manhattan since 2020. The Benson, located at 1045 Madison, featured the first new luxury condominium building on famous Madison Avenue on the Upper East Side. in over 25 years and has become the best-selling post-pandemic building. After its launch with 30% of residences already sold in October 2021, 200 East 83rd – Naftali’s 500-foot residential tower developed in partnership with the Rockefeller Group – recorded the highest number of luxury contracts signed in Manhattan for several months. consecutive, earning the building recognition as one of the best-selling residential projects in New York City and Upper East Side history. The building’s Penthouse A, asking for $27.5 million, was signed last November, breaking Third Avenue real estate records. In early 2022, the building surpassed the record it had just set with an even more expensive contract for the most exclusive unit at 200 East 83rd, Penthouse C, asking for $32.5 million. The Bellemont at 1165 Madison Avenue broke records with a $65.5 million penthouse sale just weeks after opening and is expected to begin closing in the second quarter of 2023.

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