CIT Group announced that CIT Real Estate Finance provided a $36 million senior secured loan to Kushner Companies, a diversified real estate company headquartered in New York City. The facility, which includes an $8 million renovation reserve, will be used to acquire and renovate a portfolio of single family townhomes and multifamily rental properties from the Brooklyn Law School. The combined properties total approximately 56,000 square feet and are located in Brooklyn Heights, New York. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“This is our third transaction with Kushner Companies since 2012 and our first involving properties in Brooklyn Heights, one of the most desirable neighborhoods in New York City,” said Matt Galligan, president of CIT Real Estate Finance. “With an abundance of retail shops and dining options, these properties are in high demand as there are few new developments in the area. We’re pleased to complete this transaction and look forward to further building this relationship.”
Chris Niederpruem, managing director, CIT Real Estate Finance, added, “We are excited about expanding our already deep relationship with Kushner Companies. This is a unique opportunity for them to restore some classic New York City real estate and capitalize on very strong market fundamentals in Brooklyn Heights.”
Jared Kushner, president and CEO of the Kushner Companies, said, “There is limited new multifamily development in Brooklyn Heights and a narrow inventory of townhomes in this particular submarket. When this portfolio came to market, we wanted to close this transaction quickly and efficiently. Having an established relationship with CIT, we called on Matt and his team to again put their knowledge and experience to work for us.”
Kushner Companies is a diversified real estate organization headquartered in New York City. The company is involved in the ownership, management, development and redevelopment of numerous properties. The Kushner Companies’ national reach consists of more than 13,000 multifamily apartments as well as 7 million square feet of office, industrial and retail space throughout New York, New Jersey, Pennsylvania and Illinois. Kushner Companies is guided by its experience and ability to create long-term value in strategically focused markets.