BridgeCity lends $28M for Williamsburg apartments

BridgeCity Capital provided $28 million of acquisition and construction financing to Domes Properties for a 45-unit apartment building at 87 Havemeyer Street in Williamsburg, Brooklyn, Commercial Observer reported.

Domes Properties, through the entity 87 Havemeyer Street LLC, acquired the three-parcel development site for $13 million from Michael Pescatore, PincusCo previously reported. The Michael Krariem-designed project will rise seven stories and total 47,000 gross square feet, with a fitness center, coworking space, a rooftop lounge and an outdoor terrace. Meridian Capital Group negotiated the transaction.

EJ Ehrlich, BridgeCity's director of originations, said the firm had not previously lent to Domes, a division of Brooklyn-based Domes Management. Rate and term were not disclosed.

Investors reviewing BridgeCity's construction-loan book will be underwriting build cost and lease-up, with the land basis at roughly $289,000 per unit. The $13 million site purchase against 45 units leaves little room for a land-driven write-down.

The Williamsburg site sits in Brooklyn, where a court fight continues over the Rent Guidelines Board's 7-1 vote replacing 3% and 4.5% increases with zero, as Private Wealth Daily previously reported.