Bravo Property Trust has closed a US$125 million financing for a project in Dumbo, New York that will see the conversion of an office tower to a residential tower. The project is located on Pearl Street in Brooklyn. Integritas Capital collaborated with Bravo Property Trust on the project. Furthermore, Man Group worked along side Bravo Property which is the construction and bridge lending affiliate of Bravo Capital, who has closed over US$1.5 billion in financing. The financing has been specified as a senior construction loan.
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Details on the Pearl Street residential tower
The project will eventually have 19 stories, up from the current 8-story structure. Moreover, the first 8 floors on the property will have the multifamily rentals constructed under the new 467m tax abatement program. The additional 11 floors will be vertical condo developments. The multifamily and condo portions will each have their own class-A amenity space. These include tenant lounges, outdoor space, and a fitness center. Additionally, all units will overlook the Brooklyn Bridge. In addition, the Watermark Capital Group property is proximate to the F, A, and C subway lines offering direct access to Manhattan.
Project Overview
Location: Pearl Street, Brooklyn, New York
Developers: Watermark Capital Group
Financiers: Bravo Property Trust, Integritas Capital, Man Group
Number of floors: 19
Details on the Tax Abatement Program
The New York City’s new 467m tax abatement program is described as follows. The program will provide the multifamily portion of the property with a tax abatement for 35 years. In exchange 25% of units will be reserved for low-income tenants. Further, the abatement provides a 65% exemption for the first 30 years. The exemption drops 10% per year starting in year 31.
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“Our platform is designed to deliver smart, strategic financing that drives transformative projects like this one. The Dumbo conversion is a prime example of revitalizing a top-tier location while creating high-quality housing in a market with strong demand,” Gabi Moshayev, Founder & Chairman of Bravo Property Trust, said.
