ESJ Group an d Hope Street Capital close on $108.15m construction financing
Brooklyn, NY EJS Group in partnership with Hope Street Capital closed a $108.15 million construction financing package for its forthcoming residential development at 12 Halsey St. in Bedford-Stuyvesant. The project is being developed under the Affordable New York Program and is comprised of three buildings with 240 rental units, with 30% of the total residential unit mix allocated as affordable pursuant to the 421a program. The 230,000 s/f project will also feature numerous residential amenities, including a resort-style pool, fitness center, tenant lounge and multiple landscaped roof gardens, as well as prime ground-floor retail space and parking. The project is estimated to be completed in the fall of 2025.
The $108.15 million financing package consists of a $83.15 million senior mortgage loan provided by Bank OZK and $25 million mezzanine financing provided by CanAm Enterprises. Aaron Appel of Walker & Dunlop represented EJS Group and Hope Street Capital in the transaction.
The deal comes on the heels of EJS Group securing a $137.5 million financial package in October for its forthcoming 200 East 75th St. project on the Upper East Side. Arranged by Jon Estreich of Estreich & Company, the financing for the 125,000 s/f, 36-unit condominium project was also provided by lenders Bank OZK and CanAm Enterprises.
“We’re proud to partner with Hope Street Capital on 12 Halsey St., a new rental building in Brooklyn’s Bed-Stuy neighborhood,” said Ted Segal, president of EJS Group. “Securing the support of Bank OZK and CanAm Enterprises for the second time in two months with combined loan proceeds across the two projects totaling nearly $250 million, especially in such a challenging market, speaks volumes about our firm’s vision and capabilities as well as our financial partners’ confidence in our forthcoming development and the leadership of the Estreich & Co. and Walker & Dunlop teams. The closing of this most recent financial package not only enables us to deliver exceptional residential projects in both Manhattan and Brooklyn but it also reflects our long-term commitment to New York City.”
“Bank OZK is pleased to once again be working with EJS Group and Hope Street Capital to provide construction financing for 12 Halsey Street,” said Dave Sarner, managing director of originations at Bank OZK. “The combination of top-tier sponsorship, strong market fundamentals, and superior property design/amenities fits perfectly with our strategy of financing premium properties being built by seasoned developers.”
“We are pleased to close on another financing with this outstanding team. 12 Halsey is an excellent project with a unique design that will further enhance this flourishing section of Brooklyn,” said John Reid, head ofinvestment finance at CanAm Enterprises. “As with our previous financing, we were able to agree to a structure that was highly accretive to the project while providing protections for our investors. EJS and Hope Street have proven their ability to deliver, and it is a pleasure to work with them and OZK on this transaction.”