Lonicera Partners has landed construction financing for a downtown Brooklyn project that is expected to be one of the last developments of the 421a era.
The developer has secured a $134 million loan for the mixed-use project at 15 Hanover Place, the Commercial Observer reported. City National Bank and Santander provided the debt, which was arranged by a Cushman & Wakefield team including Gideon Gil and Zachary Kraft.
Gil told the outlet that it would be one of the last assets developed under the 421a tax program, which expired last month.
Lonicera’s project includes 314 units on 295,000 square feet. The 34-story tower would include 9,000 square feet of retail space. Thanks to 421a, 95 of the apartments in the building will be affordable.
Fogarty Finger is the architect of the project, which will include a 63-space car park. A terrace is planned on the roof of the building, while the cellar will house a fitness room, a games room, a yoga studio and a children’s room.
Lonicera purchased one of five tax-relevant lots for the project last July for $12.8 million.
The development site has been the subject of controversy in the past, dating back to a lawsuit filed in 2016 by investor Abraham Leifer against the Liberman Group after the owner terminated a contract to sell the site for $44 million. dollars. Leifer was trying to develop a $70 million assembly in the area.
Santander and City National Bank have worked with Lonicera in the past. In 2019, Lonicera landed $70 million for its neighboring project at 308 Livingston Street. The loan served as construction and acquisition debt for the 160-unit project.
Founded in 2010, Lonicera recently created residential ripples in downtown Brooklyn. Earlier this year, the developer filed plans for a 290-unit mixed-use building at 55 Willoughby Street. Plans call for a 38-story tower with 223,000 square feet of residential space and 4,500 square feet of commercial use.