Finance Lending
$167M Construction Loan in Place for Brooklyn M-F Project
Aug 21, 2008
By: Barbra Murray, Contributing Editor

Forest City Ratner Cos. has closed on a $167 million construction financing deal for 80 DeKalb, a 365-unit apartment project in Downtown Brooklyn. The New York State Housing Finance Agency approved the project for $109.5 million in tax-exempt bonds and an additional $27.5 million in taxable bonds.

Construction on the 335,000-square-foot building commenced last month. For Forest City Ratner, the project marks Brooklyn-based company's first residential development endeavor in Brooklyn. Wachovia Bank N.A. and Helaba supplied credit enhancement to the $137 million bonds for 80 DeKalb, while the National Electrical Benefit Fund provided a $10 million mezzanine loan and $20 million of credit enhancement.

The 34-story tower, located off Flatbush Ave. near Fort Greene Park at the border of the BAM Cultural District, will offer 292 market-rate units and 73 affordable housing residences, which will earn the property the title of the first 80/20 project to be funded with New York State HFA-issued bonds. Furthermore, 80 DeKalb will stand out among most other 80/20 projects, as it will maintain its affordable housing segment for 99 years.

By incorporating affordable housing units into 80 DeKalb, Forest City Ratner will contribute to New York City Mayor Michael Bloomberg's New Housing Marketplace Pan calling for the development and preservation of 165,000 affordable housing residences over a 10-year period. Designed by Costas Kondylis, 80 DeKalb will adhere to guidelines necessary to achieve LEED Certification. Work is on target to reach completion in summer 2009.

Forest City Ratner owns and operates 32 properties in the New York metropolitan area. Its parent company, the $10.5 billion Cleveland-based Forest City Enterprises Inc., owns, develops and manages commercial and residential real estate across the United States. Its portfolio includes retail, apartment, office and hotel properties.

 
Recent Lending Headlines
Education Realty Nabs $222M
Jan. 06, 2009
Student housing REIT Education Realty Trust Inc. has closed a $222 million secured credit facility, courtesy of Fannie Mae DUS lender Red Mortgage Capital Inc., and is wasting precious little time making use of the proceeds.
Emeritus Closes Refi Deal, Extends $73M Debt
Jan. 05, 2009
Assisted living and Alzheimer's care facilities provider Emeritus Corp. capped the end of the year by ensuring there would be no material maturities hanging over its head in 2009. The company wrapped up the $36.3 million refinancing of seven properties through Freddie Mac, a move that allowed it to pay down and extend an existing debt with Capmark.
3Q GDP Down, 4Q Expected to Be Worse
Dec. 24, 2008
The quarterly report by the U.S. Department of Commerce on the national GDP is something of a lagging indicator. The fact that the U.S. economy contracted 0.5 percent in the third quarter--July to September--might be worrisome, but it only raises the further question of how much contraction will happen in the fourth quarter.
paulson A Bailout for Commercial Real Estate?
Dec. 22, 2008
"Right now, we believe there is insufficient systemic capacity to refinance expiring, performing commercial real-estate loans," reads a letter from a dozen commercial real estate trade groups to Treasury Sec. Henry Paulson, according to the Wall Street Journal this morning. In other words, the commercial side of the business, long perceived as relatively healthy compared with the residential side, is warning of dire straits ahead unless refinancing money is available in the near future.
CMBS Delinquencies Speeding Up: Fitch
Dec. 22, 2008
Back in January 2008, long before the capital markets took their astonishing twists, Fitch Ratings made a sobering prediction: By the end of the year, its CMBS loan delinquency index would be double or triple the 0.28 percent recorded at the end of 2007. Fitch’s crystal ball turned out to be right on the money. On Friday the ratings agency reported that CMBS delinquency reached 0.64 percent for November. At this pace, Fitch projects that CMBS delinquencies could hit 2 percent by the end of 2009.
 
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