DH Property, Goldman Sachs obtain $131M construction loan from JPMorgan, Square Mile to build warehouse in Red Hook

DH Property Holdings and Goldman Sachs Asset Management through the entity 640 Columbia Owner LLC as borrower signed a new construction loan agreement with lender JPMMorgan Chase and Square Mile Capital Management through the entity SM MRJ Finance LLC valued at $131 million for 1 parcel, including the tax class land not zoned residential or Manhattan below 110th Street (V1) at 640 Columbia Street in Red Hook. The deal closed on July 20, 2020 and was recorded on July 30, 2020.

Walker & Dunlop’s Aaron Appel, Keith Kurland and Jonathan and Adam Schwartz arranged the financing according to the Commercial Observer.

The loan package includes a $76.1 building loan, a $22.9 million project loan and a refinance of what remained of the acquisition financing, totaling $32.1 million. Square Mile originated the secured loan and assigned it to JPMorgan Chase. The Commercial Observer reported the total loan at $155 million and that Square Mile retained a mezzanine piece.

The last time the property sold was February 14, 2018, for $47,500,000.

Over the past five years, there has been one NYC Department of Buildings permit application filed for this parcel valued at more than $20,000.There has been one new building permit application totaling 335,813 square feet.
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