Hope Street Capital borrows $129M from Square Mile for new construction in Clinton Hill

Jeffrey Gerson’s Hope Street Capital through the entity 550 Clinton Partners LLC as borrower signed a loan agreement with lender Square Mile Capital’s SM Tactical Finance II-E LLC valued at $129.3 million for 2 parcels at 550 Clinton Avenue or 539 Vanderbilt Avenue and 809 Atlantic Avenue in Clinton Hill. The deal closed on November 27, 2019 and was recorded on February 20, 2020.

This $129 million is a portion of the $180.3 million the Commercial Observer reported Square Mile Capital and Pacific Western Bank provided in construction financing for the 284-unit project.  AKS Capital Partners’ Aaron Appel, Keith Kurland and Jonathan and Adam Schwartz and Michael Diaz arranged the financing. The project is being developed on land leased from the Lichter family and others.

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. There was one renovation/alteration project (A2) applied for with a total estimated value of $100,000.There has been one new building permit application totaling 231,739 square feet. Those plans include a total of 266 residential or hotel units. There have been 3 demolition projects filed over the past five years.
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