Cornell Realty borrows $28M from Madison Realty, Bluestone for mixed-use development in Williamsburg

Yitzchok Isaac Hager’s Cornell Realty Management through the entity WB Bridge Hotel LLC as borrower signed a loan agreement with lender Josh Zegen’s Madison Realty Capital and Eli Tabak’s Bluestone Group valued at $27.5 million for 159 Broadway in Williamsburg. The deal closed on November 1, 2019 and was recorded on November 15, 2019. A team at Galaxy Capital arranged the financing.

Hager plans to construct a 26-story, mixed-use residential tower. Madison provided a $21.35 refinance and gap loan in July 2019, and the new debt provided this month includes a $2.28 million building loan, a $369,000 project loan and a $3.5 million mezzanine loan supplied by Bluestone. The last time the property sold was November 27, 2017, when Cornell bought the site for $26,249,000. Madison and Bluestone have provided financing for other Hager properties including 85 Flatbush Extension and 200 Kent Avenue.

Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There was one renovation/alteration project (A2) applied for with a total estimated value of $25,000.There has been one new building permit application totaling 129,546 square feet. Those plans include a total of 256 residential and hotel units.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link

UPDATED: With the financing broker.