Walker & Dunlop Arranges $100 Million+ Construction Loan for Multifamily Project in Brooklyn
Walker & Dunlop announced securing a $110 million construction loan for 880 Atlantic Avenue, a 246-unit Class-A multifamily development in Prospect Heights, Brooklyn. The project, led by the New York Capital Markets team and EMP Capital Group, also involves QuadReal Property Group as the lender. This development offers studio, one, and two-bedroom apartments, aiming to meet high residential demand and elevate rental rates in Brooklyn. Located near Prospect Park and Fulton Mall, the area boasts excellent transport links and retail options. Walker & Dunlop had previously financed a nearby 247-unit project for EMP in March 2024 for $109 million. The loan will fund ongoing development costs, contributing to Brooklyn's multifamily housing landscape.
- Secured a $110 million construction loan for a 246-unit Class-A multifamily development.
- Strategic location in Prospect Heights, Brooklyn, near major transport links and retail hubs.
- Repeat partnership with EMP Capital Group, showcasing strong business relationships.
- The project is expected to meet high residential demand and elevate rental rates.
- Includes nearly 13,000 square feet of commercial space on a major retail corridor.
- Walker & Dunlop sourced nearly $12 billion in capital for various transactions in 2023.
- Significant investment risk associated with the $110 million loan for development.
- Potential market saturation with multiple large-scale projects underway.
- Dependence on high rental demand to justify elevated rental rates.
Insights
Walker & Dunlop's $110 million construction loan for the multifamily project at 880 Atlantic Avenue is a significant indicator of investor confidence in Brooklyn's real estate market. The project is expected to deliver a mix of studio, one-bedroom and two-bedroom apartments, addressing a market characterized by limited supply of modern mixed-use properties. From a financial perspective, securing such a substantial loan with QuadReal Property Group as the lender underscores the project's anticipated stability and profitability.
The repeat financing with EMP Capital Group also highlights the strong relationship and trust between the financial and development teams. This can be seen as a positive signal for stakeholders, reflecting well on both Walker & Dunlop's ability to secure funding and EMP’s development potential. For retail investors, this can be seen as a positive development, as it indicates a robust pipeline of projects and a bullish outlook on Brooklyn real estate.
However, investors should be aware of potential risks, including market saturation and changes in interest rates, which could affect the project's profitability. The long-term success will depend on rental market conditions and the broader economic environment.
The development at 880 Atlantic Avenue represents a significant addition to the Brooklyn multifamily market. With luxury living options and proximity to key transportation hubs like Atlantic Terminal, this project is well-positioned to attract a diverse tenant base, including professionals and families. The property's location in Prospect Heights, near high-traffic areas such as Fulton Mall and Atlantic Terminal, enhances its appeal by providing residents with easy access to retail, dining and cultural venues.
Given the limited supply of new, high-quality multifamily units in the neighborhood, the introduction of 246 units could lead to increased rental rates and competition. The project's commercial space along Atlantic Avenue further boosts its attractiveness by offering prime retail frontage in a high-traffic corridor, likely increasing foot traffic and business revenue for commercial tenants.
Nevertheless, investors should consider the overall market condition and potential economic fluctuations that could impact rental demand. The project's success hinges on sustained demand for luxury living in Brooklyn and the continuation of favorable economic conditions.
880 Atlantic Avenue (Photo: Business Wire)
The Walker & Dunlop New York Capital Markets team, led by Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Jordan Casella, and William Herring, acted as exclusive advisors to EMP Capital Group. The team identified QuadReal Property Group as the lender to secure the construction loan. Loan proceeds will be used to fund ongoing development costs.
The repeat client, EMP Capital Group, has deep involvement in the neighborhood and is also developing 1034-1042 Atlantic Avenue, a 247-unit project that Walker & Dunlop also financed in March 2024 for
"We are delighted to partner once more with the New York Capital Markets team," stated Elie Pariente of EMP. "Their collective expertise and strong relationships provided us with a seamless process that guided financing to completion. 880 Atlantic Avenue will undoubtedly be a significant addition to
880 Atlantic Avenue embodies luxury living, boasting convenient access to transportation and proximity to both Prospect Park and Fulton Mall. In a neighborhood characterized by limited supply of modern mixed-use properties, the introduction of a mix of studio, one, and two-bedroom apartments is anticipated to ignite demand and elevate rental rates.
"We're thrilled to enable yet another endeavor in the thriving heart of Brooklyn,” said Keith Kurland, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. “Situated just down the street from 1034 Atlantic, another recent project, 880 Atlantic Avenue, stands poised for success. The project will deliver market rate and affordable housing to the
Located in Prospect Heights, 880 Atlantic is perfect for professionals, families, and urbanites who seek everything from cultural venues to retail outlets. With ample transportation options nearby and upscale shops and dining, residents are attracted to its central position. Moreover, Atlantic Terminal,
Additionally, the development's nearly 13,000-square-foot commercial space benefits from prime frontage along Atlantic Avenue, a major retail corridor. Nearby Atlantic Center and Atlantic Terminal Mall draw substantial foot traffic, with over 110,000 commuters passing through daily. Proximity to Pacific Park, City Point, and Fulton Street Market further enhances the area's appeal, attracting significant daily foot traffic and retail shoppers.
In 2023, Walker & Dunlop’s Capital Markets group sourced capital for transactions totaling nearly
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240520475524/en/
Investors:
Kelsey Duffey
Investor Relations
Phone 301.202.3207
investorrelations@walkeranddunlop.com
Media:
Nina H. von Waldegg
VP, Public Relations
Phone 301.564.3291
info@walkeranddunlop.com
Source: Walker & Dunlop, Inc.
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