CIT Group Inc. announced that CIT Real Estate Finance provided a $57.5 million senior secured loan to a joint venture between RedSky Capital LLC, JZ Capital Partners and other investors to acquire property along the Brooklyn waterfront. The site, located in the popular Greenpoint neighborhood, includes 112,226 square feet of land and 19,820 square feet of pier space. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT.
The partners in the joint venture plan to develop a 40-story residential tower when leases for the existing industrial buildings on the site expire in the next two years. The plans for the project include both market and affordable rental apartments and 100,000 square feet of ground retail space.
Benjamin Bernstein, Principal, RedSky Capital LLC, said: “This site offers the opportunity to develop a new landmark residential and commercial building in one of the most up-and-coming areas of Brooklyn and all of New York City. CIT’s expertise in real estate finance has been of great value to us and all the members of the JV as we pursue our plans for this exceptional site.”
David Zalaznick, Investment Adviser, JZ Capital Partners, said: “This is our thirtieth real estate transaction with RedSky in the past three years. CIT brought to the table a wealth of knowledge about financing large-scale real estate projects in New York City and was an outstanding partner throughout the transaction.”
Meggan Walsh, Deputy Group Head and Managing Director, CIT Real Estate Finance, said, “Brooklyn continues to be among the most in-demand locations for young professionals, and waterfront properties have additional prestige above and beyond that of typical new construction.”
Matt Galligan, President, CIT Real Estate Finance, added, “We are excited to see the realization of the plans for this unique site and glad that we are able to support the continued growth of our customers and the Greenpoint neighborhood.”
RedSky is a Brooklyn-based, fully-integrated real estate company. Under the leadership of Benjamin Bernstein and Benjamin Stokes, the company acquires, owns, operates and develops real estate in the New York metropolitan area and Miami, with special consideration given to Brooklyn.
JZ Capital Partners (JZCP) is a London-listed private equity fund that invests in high quality microcap companies, real estate and other debt and equity opportunities globally but with a particular focus on opportunities in the United States and Europe. This project represents the thirtieth transaction between RedSky and JZCP during the last three years.