Brooklyn, NY Holliday Fenoglio Fowler, L.P. (HFF) has arranged $26.9 million in acquisition and construction financing for 314 Scholes St., a three-building industrial complex totaling 97,475 s/f that is being converted into creative office space in the Williamsburg neighborhood.
HFF worked on behalf of the borrower, The Hudson Cos., to arrange the five-year, floating-rate loan through M&T Bank. Loan proceeds were used to acquire the property and will fund the repositioning of the asset into a class A creative office and retail property designed by S9 Architects in order to capitalize on the growing demand for office in Williamsburg’s live-work-play environment.
The two one-story buildings and one three-story building are interconnected and currently used as warehouse space. After the conversion, the class A complex will consist of 83,211 s/f of creative office and 14,543 s/f of retail space. The borrower is adding a full-service rooftop bar and restaurant to the top of the three-story second building, which will have protected 360-degree views from the rooftop and the top two floors. In total, the complex will have 10,697 s/f of ground-floor and rooftop courtyards. The project is expected to be completed in 2018. 314 Scholes Street is located in the East Williamsburg neighborhood of Brooklyn and blocks from the Montrose Avenue, Morgan Avenue and Grand Street L subway stations, providing easy access into Manhattan.
The HFF debt placement team representing the borrower was led by managing director Christopher Peck and analyst Rory Shepard.
“It was a privilege to work alongside Hudson to procure financing that will allow the them to, along with ABS Partners Real Estate, re-imagine 314 Scholes into a unique creative office property,” Peck said. “The boutique size floorplates cater to a diverse mix of tenants and the expansive retail will serve as a true amenity to the Brooklyn community.”
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