Flank Secures $70M Bridge Financing For Hilton Brooklyn
As the 193-key Hilton Brooklyn approaches its opening, its developer has secured a recapitalization.
Architecture and development firm Flank has acquired a three-year, $70M debt-financing package and the ownership stake of its partner, The Carlyle Group, for an undisclosed amount.
The bridge financing package is made up of a $55M senior loan from M&T Bank and $15M in junior financing from Terra Capital Partners, the Wall Street Journal reports.
The size of the financing is impressive, considering financiers’ reluctance to lend to NYC hotels as fears of a supply glut run rampant and competition with Airbnb cuts demand.
Flank and Carlyle had tried to sell the hotel—which is part of a mixed-use development that also includes 128 condos and retail space—earlier this year.
The hotel and its restaurant (led by celebrity chef Rob Newton) are slated to open before the end of the year. [WSJ]
