Bridge, DH Property and Banner Oak sign $341.7M construction loan with JPMorgan for Brooklyn warehouse

A planned distribution center in Brooklyn is moving forward with a $341.7 million construction loan.

Bridge Development Partners, DH Property Holdings and Banner Oak Capital signed the loan with JPMorgan Chase. This replaces a previous $100 million loan from Apollo Commercial Real Estate Finance.

The construction loan will go towards costs of constructing a planned four-level warehouse with up to 1.3 million square-feet of space at 50 21st Street. The property also includes 70 20th Street, and 73 20th Street in Greenwood Heights, Brooklyn.

“Demand for best-in-class distribution space in New York City’s outer boroughs has surged, as the major e-commerce users continue to heighten their focus on last mile delivery operations to service the city’s consumer populations,” Tony Pricco of Bridge Development Partners told GlobeSt.com at the time of the purchase in 2019. “Bridge, in partnership with DH Property Holdings, plans to be at the forefront of last mile development in the outer boroughs, and we are actively pursuing additional acquisition and development opportunities in the area.”

Sean Zasche, CFO of  Bridge Development Partners, signed on the joint-venture loan through entity SIP Holdings Venture, LLC.

Bridge Development Partners, DH Property Holdings and Banner Oak Capital bought the property in 2019 for $40.8 million.

Bridge Development Partners has not yet responded to a PincusCo request for comment.

The four properties have 367,219 square feet of built space and 1,193,236 square feet of additional air rights for a total buildable of 1,557,434 square feet according to PincusCo analysis of city data.

The loan price per built square foot is $503 and the price per buildable square foot is $118 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.) (B00519475) Plans for a 216,034 square-foot S-2 were filed on July 29, 2021.

Within a 400-foot radius of 70 20th Street, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. There were two new building permit applications. The most recent of these two items was a filing on August 28, 2020 for a 36,381-square-foot S-1 building at 73 20th St.

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