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Gaia extends $48M loan for Williamsburg multifamily property to 2027
The extension moves the loan maturity to August 2027, and Gaia said it chose that path because refinancing is less attractive in the current rising interest rate environment.
Gaia Real Estate secured a second consecutive one-year extension of its $48 million loan backed by Raymond James Bank for a multifamily building at 55 Hope Street in Williamsburg, Brooklyn, according to Commercial Observer.
The deal extends the loan maturity to August 2027, roughly five years after Gaia acquired the 1907-built property, which had been renovated in 2012 and previously used as a pencil factory.
Gaia CEO and co-founder Danny Fishman said the company increased net operating income through active management and a long-term value creation plan, and that lenders showed interest in refinancing because the loan is below 50 percent loan-to-value with a “very strong” debt service coverage ratio.
After purchasing the 117-unit property for $80 million in August 2022 from Hope Street Capital, Gaia added coworking space, refurbished the rooftop, and provided tenant concessions, while Hope Street Capital originally bought the building for $17 million in 2010 and converted it from industrial to residential use, Commercial Observer reported.