NEW YORK CITY— Hudson Companies has secured $92 million in refinancing for the Parkline, a 254-unit multifamily rental apartment building in Prospect Lefferts Gardens, Brooklyn. The loan from Union Bank is structured as a direct purchase of tax-exempt bonds issued by the New York State Housing Finance Agency, under the 80/20 housing program.
The program requires 20% of the units to be set aside for low income households earning at or below 60% of the area median income. The other 80% of the apartments are rented at market rate.
Greystone Bassuk’s president Drew Fletcher, and managing director, Matt Klauer, led the debt placement for the transaction.
This refinancing replaces the original construction loan of $71.4 million, provided by Citibank in 2013. The new loan carries a 10-year term with five years of interest-only payment obligations.
Fletcher tells GlobeSt.com, “It’s the first time Union Bank has purchased HFA bonds in New York. Union Bank rolled up their sleeves to understand the structure and they get a tax-exempt yield.”
Located at 626 Flatbush Ave. between Hawthorne and Fenimore streets, the Parkline is a 24-story high-rise at the eastern edge of Prospect Park. Alison Novak, principal at the Hudson Companies, noted the real estate company was pleased to bring the LEED-Gold and EnergyStar status, green development to the neighborhood, offering affordable and market rate housing.
Ground-up construction commenced in 2013 and leasing began on July 1, 2016. Currently, 95% of the units are leased.