A rendering of a planned 400,000-square-foot residential building at 202 Tillary St. in Brooklyn — Courtesy: Progress Capital
By Joshua Burd
A development team has secured a $22 million loan for a newly expanded residential project in Brooklyn, in a transaction arranged by Progress Capital.
The commercial mortgage advisory firm on Wednesday announced the financing for Maddd Equities and Joy Construction, which are developing the 400,000-square-foot building at 202 Tillary St. Brad Domenico, a partner with Tinton Falls-based Progress, sourced the senior and mezzanine debt with Natixis and Libremax Capital, respectively.
Developers Jorge Madruga and Eli Weiss are now expanding the project beyond its original 235,000-square-foot plan after recently acquiring $25 million of land and air rights from the New York City Housing Authority, according to a news release. The property, currently the site of an American Self Storage facility, will ultimately include a significant affordable housing component.
“I always tell my clients that relationships are often more important than rate shopping, especially when it comes to development,” Domenico said. “This is a perfect example of how the Maddd Equities and Joy Construction relationship with Natixis and Libremax allowed for this acquisition during COVID.”
Progress noted that Libremax has upsized its mezzanine position by advancing an additional $22 million.
“While the whole world was building luxury condos for non-New Yorkers and talking about what art they want for the lobby, we stayed true to our core business,” Madruga and Weiss said in a joint statement. “While the condo developers are in the Hamptons trying to bulk sale their inventory at a discount, we kept our eye on our mission to improve housing through community-driven value-add transactions.”