Lendlease, Aware Super sign $360M construction loan others for 834-unit project in Greenpoint

Lendlease and Aware Super through the entity 1 Java Owner LLC as borrower signed a new construction loan with lenders Bank of America, Mizuho Bank, Oversea-Chinese Banking Corporation, and TD Bank valued at $360 million for the industrial building (E1) at 1 Java Street at West Street in Greenpoint, Brooklyn.
The developers plan an 834-unit project at the site.
The deal closed on December 13, 2022 and was recorded on December 20, 2022.
The owner bought the property on October 7, 2020, for $110.8 million. The signatory for Lendlease and Aware Super was Scott Walsh. The Commercial Observer reported on the loan here.

The property

The  West Street parcel has frontage of 200 feet and is 591 feet deep with a total lot size of 220,768 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.8 million.The most recent loan totaled $57.5 million and was provided by SKW Funding on September 3, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation, $50,000 in ECB penalties, and $50,000 in OATH penalties in the last year.

Development

On the lot, there are three active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 1,725,636 square feet. The largest is a new building project for a 569-unit, 644,020 square-foot R-2 building developed by Thomas Alaimo with plans filed April 30, 2018. The second largest is a new building project for a 202-unit building developed by Thomas Alaimo with plans filed May 3, 2018.

The neighborhood

In Greenpoint, the bulk, or 30 percent of the 22.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 27 percent of the space. In sales, Greenpoint has 2 times the average sales volume among other neighborhoods with $700.9 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Greenpoint has 3.1 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 103,000 square feet of the 206,000 square feet. The identified owner is Lendlease.

The borrower

The PincusCo database currently indicates that Lendlease owned at least three commercial properties in New York City with 1,722,586 square feet and a city-determined market value of $253 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 90 percent of the 1,722,586 square feet of built space are specialty properties, with W7 properties next occupying 10 percent of the space. The bulk, or 90 percent of the built space, is in Brooklyn, with Manhattan next at 10 percent of the space.

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