MKRO I provides $3.48 million in gap equity financing

According to Massey Knakal Realty Services and RiverOak Investment Corp., LLC, the companies' partnership, MKRO I, has provided gap equity financing for a rental building located in Bushwick. The $3.48 million investment was made on behalf of MKRO I, the partnership's value-added real estate fund that targets commercial real estate investments in the city. DSA Realty Services has partnered with MKRO I, LLC on this investment. Arik Lifshitz, CEO of DSA Realty Services oversaw the investment. The 57,125 s/f, 37-unit property holds ground-floor duplex apartments and a roof deck. "We are very excited about this opportunity and its potential to contribute value for our investors," said Steve DeNardo, CEO of RiverOak. "Bushwick has experienced growing demand and strengthening real estate fundamentals. Vacancy is low, demand is growing, and a lack of new supply is pressing rents upwards." This was MKRO I's second investment after providing equity for an acquisition of 200 units in Harlem earlier in the year. "By making equity investments of $2-7 million, we have found a great niche for ourselves, where little if no organized capital exists," said James Nelson, partner at Massey Knakal. "MKRO is happy to have provided gap equity financing to a quality sponsor who is taking advantage of Brooklyn's renaissance. This is our second direct financing in recent months which will bolster all our capital services activities," said Paul Massey, Jr., CEO at Massey Knakal.