Douglaston Development Buys BK Development from BEB for $66M
Douglaston Development has acquired a 474,000-square-foot mixed-income housing development site in Bedford-Stuyvesant, Brooklyn, from BEB Capital for $66 million. The development project is a collaborative effort involving Totem, BEB, Bedford Stuyvesant Restoration Corporation, St. Nicks Alliance, and TerraCRG.
Douglaston also secured $287 million in combined construction financing and preferred equity. Wells Fargo Bank spearheaded the $185 million construction financing as an administrative agent, partnering with M&T Bank as joint lead arranger. Bank United also participated in the facility. Funds managed by an affiliate of Ares Real Estate Income Trust provided a $102 million preferred equity investment. BEB Capital and Totem co-invested in the project with Douglaston and will serve as co-developer on the $320 million development.
Located at 1057 Atlantic Avenue, the group aims to deliver 137 permanently affordable units as part of a 456-unit mixed-income housing development. The project also includes ground-floor retail space and amenities such as a gym, game room, and children’s playroom. Construction has already begun on the site.
TerraCRG, a commercial real estate brokerage firm specializing in Brooklyn Investment Sales with a team led by Totem and Ofer Cohen, facilitated the assemblage of the lots in 2019 and brokered the current transaction. Greystone Capital Advisors arranged the financing on behalf of Douglaston with a team led by Drew Fletcher, Paul Fried, and Bryan Grover.
Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money.
With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.