HRC funds $5.5 million construction loan for Brooklyn school conversion; located in the Bedford-Stuyvesant section of Brooklyn

Real estate fund manager Hudson Realty Capital LLC (HRC) has funded a $5.5 million first-mortgage construction loan secured by a former school building in the Bedford-Stuyvesant section. The sponsor is utilizing the loan proceeds to fund building renovations. "This repeat borrower relied on our swift loan execution in order to proceed with the business plan, which is to complete the renovation and lease-up the residential units," said Spencer Garfield, managing director, originations. "We have funded five separate transactions with this same sponsor in a market we both know very well." The property, a former Catholic school and rectory, is comprised of two buildings connected at the basement level. Combined, the buildings feature 57,720 s/f that is being converted into a 46-unit multifamily complex with 23 underground parking spaces. The business plan includes converting the former school into an apartment-rental complex featuring a mix of studio, one- and two-bedroom units, a lounge and a gym facility. A leading provider of middle-market capital, with more than $2 billion in assets under management, HRC's investment activities are focused on middle-market transitional assets. The real estate fund manager is targeting all property types, including multifamily, office, retail, industrial and hospitality, in the $5 million to $50 million per-asset range. HRC has closed more than $3.5 billion in transactions since the formation of its initial two funds in 2003. The company's latest transactions involve new originations, note acquisition financing, DPO financing and performing and non-performing loan purchases. Recent highlights include a $17 million first-mortgage loan secured by a three-story, vacant industrial loft building in the DUMBO section; an $11.6 million Pittsburgh office/retail bridge loan secured by a 70,478 s/f property; and a $9 million first-mortgage construction loan involving a partially completed condominium development in northern Bergen County, N.J. Established as a Minority-Owned Business Enterprise (MBE) and headquartered in New York City, Hudson has regional offices in Portland, Maine and Fort Myers, Florida. The company also has been named among the New York area's largest minority-owned companies as well as one of the Top 25 lenders nationally.