First Citizens Bank Provides $74 Million for Multifamily Building in Downtown Brooklyn

Rhea-AI Summary

First Citizens Bank announced a $74 million senior secured loan to Lonicera Partners for a 23-story, class A multifamily building in Downtown Brooklyn, NY. The property at 310 Livingston Street features 160 luxury apartments and over 8,600 sq ft of retail and amenity space. Lonicera Partners, a real estate development firm focused on residential projects in Brooklyn, has a well-regarded track record. First Citizens' Commercial Real Estate unit, which specializes in senior secured real estate financing, praised the ongoing partnership with Lonicera and highlighted the strategic value of the new development.

Positive

• First Citizens Bank provided a $74 million loan, highlighting their financial strength.
• The funded project is a 23-story, class A multifamily building, indicating high-quality development.
• The building features 160 luxury apartments and 8,600 sq ft of retail space, potentially increasing revenue.
• Lonicera Partners has a strong track record, which may mitigate risk.
• The location in Downtown Brooklyn is desirable and high-growth, indicating potential for high occupancy.

Negative

• The commitment of $74 million increases First Citizens Bank's exposure to real estate market fluctuations.
• Concentration risk as the loan is for a single project in a specific area (Downtown Brooklyn).
• Potential risk if the luxury apartment market in Brooklyn faces saturation or downturns.

Insights

Financial Analyst

First Citizens Bank provided a $74 million senior secured loan to Lonicera Partners for a multifamily building in Downtown Brooklyn. The bank's involvement indicates a strong commitment to the commercial real estate sector and confidence in Lonicera's track record. This loan underscores the resilience and continued growth potential of the real estate market in high-demand locations like Downtown Brooklyn.

From a financial perspective, senior secured loans are generally low-risk for lenders as they are backed by collateral. This implies that First Citizens Bank expects a stable return on investment. For investors, this news signals the bank's strategic allocation of capital in real estate, potentially translating to increased revenues from interest and fees associated with the loan.

However, the interest rate and terms of the loan remain unspecified, which could impact its profitability. Evaluating the loan's impact requires understanding these specifics. Nonetheless, the overall move aligns with a conservative growth strategy, focusing on established, lucrative markets.

Market Research Analyst

The partnership between First Citizens Bank and Lonicera Partners highlights a significant investment in the Brooklyn real estate market. Downtown Brooklyn is known for its high-growth potential, driven by rising demand for luxury living spaces. This development at 310 Livingston Street caters to affluent residents seeking modern amenities, suggesting a thriving rental market.

For stakeholders, this move reinforces Downtown Brooklyn's attractiveness as a development hub. The building's luxury status and inclusion of retail space point to a mixed-use strategy, appealing to both residents and businesses. This can create a vibrant, self-sustaining community, boosting local economic activity and property values.

However, investors should be mindful of market saturation and economic downturns, which could affect rental demand and property values. Despite these risks, the strategic location and luxury positioning of the project appear well thought out, promising potential long-term returns.

NEW YORK, May 28, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Commercial Real Estate business served as sole lender on a $74 million senior secured loan to Lonicera Partners on a 23-story, class A multifamily building in Downtown Brooklyn, New York.

Located at 310 Livingston Street, the building features 160 luxury apartment units and over 8,600 square feet of ground floor retail and premier amenity space.

"We're pleased to partner with First Citizens Commercial Real Estate on this financing, after having positive experiences working with them on other commercial real estate deals in recent years," said Jamie Anthony, founder of Lonicera Partners. "We appreciate their expertise in commercial real estate construction financing, as well as their ability to deliver tailored financing that meets our specific business needs."

Lonicera Partners is a Brooklyn-based real estate investment and development firm founded in 2010. Their portfolio consists primarily of residential development projects in the Downtown Brooklyn area. 

"Lonicera Partners has a strong track record of multifamily developments in the greater NYC area and an in-depth knowledge of the neighborhoods in which they invest," said Chris Niederpruem, group head for Commercial Real Estate. "We enjoy working with Lonicera's experienced leadership team, and we look forward to supporting them in future business opportunities."

"We were delighted to again work with Lonicera to support their growing portfolio of strategic multifamily projects," said Ted Dalton, a managing director with First Citizens Commercial Real Estate. "310 Livingston Street is a valuable asset in Lonicera's portfolio given its location in the high-growth area of Downtown Brooklyn, as well as the convenience and state-of-the-art amenities it offers to its residents."

First Citizens Commercial Real Estate originates and underwrites senior secured real estate financing for single properties, property portfolios and loan portfolios.

About First Citizens Bank 
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:  
Lexa Tutela Losey 
212-461-5305 
Lexa.Tutela@firstcitizens.com  

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SOURCE First Citizens Bank

FAQ

What is the amount of the loan provided by First Citizens Bank for the Brooklyn project?

First Citizens Bank provided a $74 million senior secured loan for the multifamily building project in Downtown Brooklyn.

When was the loan announcement made by First Citizens Bank?

The loan announcement was made on May 28, 2024.

What is the location of the multifamily building financed by First Citizens Bank?

The financed multifamily building is located at 310 Livingston Street, Downtown Brooklyn, New York.

How many apartment units are there in the newly financed building?

The building features 160 luxury apartment units.

What additional amenities does the 310 Livingston Street project offer?

The project includes over 8,600 square feet of ground floor retail and premier amenity space.

Who is the developer of the 310 Livingston Street project?

The developer is Lonicera Partners, a Brooklyn-based real estate investment and development firm.

What type of financing does First Citizens Bank's Commercial Real Estate unit specialize in?

First Citizens Bank's Commercial Real Estate unit specializes in senior secured real estate financing for single properties, property portfolios, and loan portfolios.