Avison Young secures $30 million loan for Green Manufacturing Center at Brooklyn Navy Yard

Brooklyn, NY Avison Young secured a $30 million sub-leasehold mortgage loan on behalf of an entity controlled by the Brooklyn Navy Yard Development Corp. (BNYDC) for the Green Manufacturing Center (GMC) at the Brooklyn Navy Yard, a set of three buildings totaling 250,680 s/f of light industrial and ancillary office space. The financing was provided by Webster Bank.

Avison Young’s tri-state debt and equity finance team led by principal Scott Singer; executive director Kevin Swartz; senior director Kathleen McSharry and analyst David Brucker arranged the financing on behalf of BNYDC. Notably, the team conceived of the sub-leasehold financing structure for BNYDC over a decade ago and secured financing at that time from Sterling National Bank, which merged with Webster Bank in 2022.

Originally built between 1857 and the 1940s, the GMC was used as machine shops for manufacturing ship components for the U.S. Navy during World War II. In 2015, BNYDC completed substantial renovations that involved modifying the existing buildings to create a multi-tenanted building complex for industrial and manufacturing tenants designed according to Leadership in Energy and Environmental Design (LEED) principles. The renovation included repairs to the foundation, facade restoration, improved building envelope, new windows, new metal roof, new utilities/mechanical systems, new life safety systems, and additional work to attract prospective tenants.

The property is fully leased to four tenants that exemplify the Yard’s ethos to champion economic and innovation growth in Brooklyn, collectively employing hundreds of workers earning quality wages and honing real skills across multiple industries.

“We’re pleased to continue our long-standing partnership with the Brooklyn Navy Yard Development Corp. with this latest financing,” said Singer. “By leveraging the sub-leasehold structure our team originally implemented over a decade ago, we were able to deliver a solution that supports the Yard’s ongoing growth while unlocking additional value from a fully stabilized asset.”

“The Brooklyn Navy Yard is a powerful engine for job creation and economic growth. We support over 13,000 jobs with our campus and this financing enables us to build on that momentum,” said Lindsay Greene, president & CEO of the Brooklyn Navy Yard. “The Green Manufacturing Center exemplifies our progress and this investment ensures we can continue to deliver economic opportunity through manufacturing jobs to New Yorkers for years to come.”

“We have had a long-term relationship with The Brooklyn Navy Yard that spans over a decade,” said Ari Klein, Senior Managing Director at Webster Bank. “We are proud in our ability to support our clients that look to bolster the local community.”