Watermark Capital Group Secures $125 Million for Brooklyn Conversion Project
Watermark Capital Group, led by Wolfe Landau, has successfully obtained $125 million in construction financing aimed at converting a former office building into residential units in Brooklyn. This funding marks a significant step in the company’s ambitious redevelopment plans.
Details of the Financing
The financial backing for this project comes from Bravo Property Trust, a subsidiary of Bravo Capital, which specializes in construction and bridge lending. They collaborated with Integritas Capital to facilitate the loan for this transformative project located at 175 Pearl Street in the Dumbo neighborhood of Brooklyn.
Background of the Project
This development involves the transformation of an eight-story office building, acquired from Cannon Hill Capital Partners, into multifamily residential spaces. Notably, the project will also see the construction of an additional 11-story condominium atop the existing structure.
The process began nearly a year ago when BridgeCity Capital provided a $50.6 million acquisition loan to support Watermark’s plans to repurpose this historic property, originally built in 1918.
Project Features and Community Benefits
According to Bravo, the redevelopment will introduce various amenities to enhance residents’ living experience. These will include:
- Tenant lounges
- A fitness center
The comprehensive redevelopment is slated for completion in 2027, with the building occupying a prime location at the junction of Pearl and Sands streets, close to access points for both the Brooklyn Bridge and the Manhattan Bridge.
Affordable Housing Component
A noteworthy aspect of this project is the incorporation of affordable housing units. The residential portion will benefit from New York City’s new 467m program, which allows for a 35-year tax abatement. This program mandates that 25 percent of the units be designated as affordable housing, providing significant tax relief that starts at a 65 percent exemption for the first 30 years.
Statements from Stakeholders
“We are proud to finance best-in-class locations like Dumbo, and sponsors who have a decades-long track record of consistent success,” stated Aaron Krawitz, CEO of Bravo Capital and Bravo Property Trust.
Gabi Moshayev, co-founder and chairman of Bravo Property Trust, noted, “The Dumbo conversion is a prime example of revitalizing a top-tier location while creating high-quality housing in a market with strong demand.”
Furthermore, Stephen Palmese, co-founder and managing principal of Integritas Capital, emphasized that their firm is among a select few in the country that has successfully repurposed office and commercial buildings for residential use across various cities.
Conclusion
This project represents a vital push towards optimizing urban real estate and addressing housing needs in a high-demand area. While officials from Watermark Capital have not yet commented, this initiative is anticipated to significantly enhance the Dumbo neighborhood.
For more details, contact Andrew Coen at ac***@co****************.com.
