M&T Realty Capital Corporation Provides $414.83 Million for a Multifamily Housing Property in Brooklyn, New York

Rhea-AI Summary

M&T Realty Capital closes a $414.8 million Freddie Mac loan for Brooklyn Crossing, an 858-unit multifamily property in Brooklyn, NY. The deal secured favorable terms for The Brodsky Organization, offering luxury apartments near Prospect Park with top-notch amenities.

Insights

Real Estate Financial Analyst

The closure of a substantial Freddie Mac conventional loan by M&T Realty Capital Corporation for Brooklyn Crossing indicates a robust interest in multifamily properties, particularly in urban centers like Brooklyn, NY. The loan's size, $414.82 million, reflects both the scale of the project and the confidence of financial institutions in the real estate market. This transaction demonstrates the liquidity in the capital markets and the availability of financing for large-scale residential developments.

From a financial perspective, securing a 10-year fixed-rate refinance is advantageous for the property developers as it locks in the borrowing costs over a decade, which can be particularly beneficial in a rising interest rate environment. This could potentially lead to increased net operating income due to stable financing costs. Furthermore, the emphasis on a significant number of affordable housing units could align with various government incentives, impacting the project's long-term financial viability and social responsibility profile.

Market Research Analyst

The multifamily housing sector has been experiencing growth, driven by demographic trends and urbanization. Brooklyn Crossing's location adjacent to Prospect Park and its high-end amenities position it to capitalize on the demand for luxury living spaces within the city. The development's proximity to cultural, dining and transportation hubs makes it an attractive option for potential residents, potentially leading to high occupancy rates and sustained rental income.

Moreover, the collaboration between M&T Realty Capital Corporation and M&T Bank showcases a trend towards integrated financial services, where clients can access a variety of financing options. This could indicate a competitive edge for financial institutions that offer a full-service model, as they can meet diverse client needs, from construction to permanent financing.

Urban Development Expert

The financing and development of Brooklyn Crossing play a significant role in the urban landscape of Brooklyn, particularly in the Prospect Heights neighborhood. The project's ability to transform the area by providing a mix of luxury and affordable housing addresses both market demand and community needs. The project's contribution to the local housing market, especially with the inclusion of affordable units, aligns with broader urban development goals of creating diverse and inclusive communities.

Additionally, the development's emphasis on amenities reflects a shift in urban living preferences, where residents seek not just a place to live but a lifestyle. The long-term impact on the neighborhood could include increased property values and a stimulus for further development, potentially reshaping the economic and social fabric of the area.

BALTIMORE, April 3, 2024 /PRNewswire/ -- M&T Realty Capital Corporation® is pleased to announce the closing of a $414,829,000 Freddie Mac conventional loan for Brooklyn Crossing, an 858-unit multifamily housing property located in Brooklyn, NY. The team was able to successfully secure favorable permanent financing terms for their client The Brodsky Organization.

Brooklyn Crossing, a luxury apartment building, is adjacent to the iconic Prospect Park and provides easy access to the cosmopolitan neighborhood's art, culture, and restaurants. The property offers brand new studio- and one- to three-bedroom residences for rent. Property amenities include a screening room, colossal fitness center, a rooftop terrace and lounge, and an outdoor pool.

The transaction was led by Robert Barry, Senior Vice President, in M&T Realty Capital Corporation's New York City office. Barry collaborated closely with Andrea Wagonseller, Senior Vice President, M&T Bank, who led the initial construction loan with a syndicate of lenders. Their partnership highlights M&T Bank's full-service model and ability to offer both on and off-balance sheet solutions. "M&T Realty Capital is excited to once again place financing for The Brodsky Organization and Greenland – best-in-class developers, owners and operators," said Michael Edelman, M&T Realty Capital Corporation Chief Executive Officer. "With its unparalleled amenities and convenient access to multiple subway lines, Brooklyn Crossing has transformed the Prospect Heights neighborhood. Freddie Mac provided a very attractive 10-year, fixed-rate refinance commensurate with the significant number of affordable housing units this project supplied Brooklyn."

To learn more about M&T RCC and our comprehensive lending options visit www.mtrcc.com.

About M&T Realty Capital Corporation
M&T Realty Capital Corporation® (www.mtrcc.com) is a wholly-owned subsidiary of M&T Bank (NYSE: MTB) – the principal banking subsidiary of the M&T Bank Corporation, one of the top 15 U.S.-based commercial bank holding companies. M&T Realty Capital Corporation specializes in providing competitive financing nationwide for multifamily properties, commercial income properties, and healthcare facilities. M&T RCC is a fully accredited Fannie Mae DUS® lender, a Freddie Mac Optigo® lender, an approved FHA/HUD MAP and LEAN lender, and offers life insurance company and CMBS financing through correspondent relationships.

Equal Housing Lender. ©2024 M&T Realty Capital Corporation. Member FDIC. NMLS #1024366.
M&T Realty Capital Corporation is a wholly-owned subsidiary of M&T Bank. Member FDIC.
"DUS®" is a registered trademark of Fannie Mae. "Optigo®" is a registered trademark of Freddie Mac.

Media Contact:
Imani Green 
267-201-5647
igreen@mtb.com

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SOURCE M&T Bank

FAQ

What was the amount of the Freddie Mac loan secured by M&T Realty Capital for Brooklyn Crossing?

M&T Realty Capital closed a $414,829,000 Freddie Mac conventional loan for Brooklyn Crossing.

Where is Brooklyn Crossing located?

Brooklyn Crossing is located in Brooklyn, NY, adjacent to Prospect Park.

What type of residences does Brooklyn Crossing offer for rent?

Brooklyn Crossing offers brand new studio- and one- to three-bedroom residences for rent.

Who led the transaction for M&T Realty Capital in New York City?

The transaction was led by Robert Barry, Senior Vice President, in M&T Realty Capital 's New York City office.

What amenities does Brooklyn Crossing offer?

Brooklyn Crossing offers amenities such as a screening room, fitness center, rooftop terrace, lounge, and outdoor pool.

Which organization was the client for the Freddie Mac loan secured by M&T Realty Capital ?

The Brodsky Organization was the client for the Freddie Mac loan secured by M&T Realty Capital