David Dweck and Flatiron Real Estate Investors borrow $45M from G4 Capital Partners for construction in Williamsburg

UPDATED 11:52 a.m. October 7, 2019: David Dweck and Flatiron Real Estate Investors through the entity 186N6 Owner LLC as borrower signed a loan agreement with lender G4 Capital Partners through the entity G4 18177, LLC valued at $45.0 million for the redevelopment of 2 parcels, including the tax class parochial schools, yeshivas (W2) at 186 North 6th Street, 584 Driggs Avenue in Williamsburg. The deal closed on September 27, 2019 and was recorded on October 4, 2019.
The property contains a total of 58,000 square feet of built space.

The financing includes an $11.5 million building loan mortgage and a $3.5 million project loan mortgage which were added to the previously issued $30 million acquisition loan. AXOS Bank (formerly known as BofI Federal Bank) acquired a senior participating interest from G4 Capital in the $45 million loan. The German co-living company Medici Living Group, operating as Quarters, signed a lease August 15, 2019 for a portion of the building and Unity Preparatory Charter School of Brooklyn signed a lease in June 2018 for the lower portion of the building. The last time the property sold was April 30, 2018, when Dweck bought it for $31,100,000.

Ralph Hanan of Compass Commercial (while previously with TGG Urban), represented the landlord, and Isaac Mograby of Crown Retail Services represented the tenant, Medici Living Group.

Over the past five years, there have been 5 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $7,500,000. Those filings sought to increase the number of residential units by 60 to 60 There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $657,500.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

CORRECTION: An earlier version of this post said that G4 Capital assigned its loan to Axos Bank. However, G4 did not assign the loan. Instead, Axos Bank acquired a senior participation interest in the loan by effectively lending G4 Capital an unspecified portion of the $45 million loan.

CLARIFICATION: Ralph Hanan of Compass Commercial (while previously with TGG Urban), represented the landlord, and Isaac Mograby of Crown Retail Services represented the tenant, Medici Living Group. Lee & Associates was not involved in the transaction.