New York, NY ERG Commercial Real Estate has arranged a $3 million refinance/cash out loan to the owner of a Gowanus warehouse that is presently leased to Brooklyn Gin, a gin distillery/restaurant coming to the neighborhood that borders Park Slope.
The owner/developer plans to use the loan from a Long Island bank to refinance two earlier loans on the 8,280 s/f two-story warehouse at 316 Douglass St. the borrower purchased in 2004. They will also use the remainder of the loan to buy new properties in the tri-state area to add to a collection of small mixed-use buildings in Brooklyn and Queens owned by the borrower.
ERG Commercial Real Estate’s Michal Walma negotiated the loan which is for 10 years, at an interest rate of 3.75%, fixed for five years.
“Due to having a strong relationship with the bank and having a strong borrower, we were able to find a bank willing to lend on this single tenant/triple net property.” said Walma “Also, industrial properties are gaining in value which banks recognize because of e-commerce retail and increased need for storage and warehouses.”
Brooklyn Gin will initiate a full build-out in the building with a small distillery inside, as well as restaurant with rooftop deck to the warehouse that was built in 1931. It will also keep open its main distillery upstate at Warwick Valley Winery and Distillery.
316 Douglass is part of the “The Gowanus rezoning” which would allow more than 8,500 new apartments to be built in Gowanus bringing new residents to live in the area.
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