Wolfe Landau’s Watermark Capital Group has announced a significant financing achievement, securing $125 million for a transformative office-to-residential conversion project located in Brooklyn, as first reported by Commercial Observer.

Loan Details and Partnerships

The financing has been facilitated by Bravo Property Trust, a construction and bridge lending affiliate of Bravo Capital, in collaboration with Integritas Capital. The loan is specifically designated for the redevelopment of 175 Pearl Street, a former eight-story office building in the Dumbo area, previously acquired from Cannon Hill Capital Partners.

Last year, BridgeCity Capital provided a $50.6 million acquisition loan, marking the initial phase of Watermark’s effort to repurpose the property which was built in 1918.

Project Overview

The renovation plans include converting the existing office space into multifamily rental units and adding a new 11-story condominium on top of the original structure. Amenities planned for the development include tenant lounges and a fitness center.

Scheduled for completion in 2027, the 19-story project is conveniently situated at the intersection of Pearl and Sands streets, near the approaches to the Brooklyn and Manhattan Bridges.

Affordable Housing Initiatives

The residential segment of the development will benefit from New York City’s 467m program, which offers a 35-year tax abatement in exchange for a commitment to allocate 25 percent of the units as affordable housing. The abatement includes a 65 percent exemption during the first 30 years, with a 10 percent reduction annually starting in the 31st year.

Expert Insights

“The Dumbo conversion is a prime example of revitalizing a top-tier location while creating high-quality housing in a market with strong demand,” said Gabi Moshayev, co-founder and chairman of Bravo Property Trust.

Additionally, Stephen Palmese, co-founder and managing principal of Integritas Capital, expressed pride in his company’s track record of converting office and other commercial properties to residential use across multiple cities as part of their equity strategy.

Commentary and Future Steps

Watermark Capital has yet to comment on the progress of this venture as they continue to push forward with their plans to modernize the Dumbo area and meet the housing demands in Brooklyn.

Contact

For additional inquiries or information, Andrew Coen can be contacted at ac***@****************er.com.