Bisnow Exclusive: Equity Financing Closes for Dumbo Site
The LP equity financing for Megalith Capital and Urban Realty Partners’ resi development project on the former Jehovah’s Witnesses campus has closed, says Maverick Capital managing partner Adi Chugh, whose firm arranged the deal. His under-the-radar financial advisory firm also introduced the partners in December 2012 and arranged the land-acquisition financing in March 2013. The developers are building a 105-unit apartment building at 173 Front St and converting a 35k SF warehouse at 200 Water St into 15 condos (rendered below). That follows a recent $141M, 85% LTC loan Maverick put together for Yitzchak Tessler to build 60 to 70 condos at 130 Madison at 33rd Street.
Maverick may be new to you (in which case, you must have lost that loving feeling), but the company expects to arrange $2.5B to $3B of deals this year with just four employees. Adi says the company is comfy arranging high-leverage debt. (It also closed a 90% LTC loan at the end of 2012 for Stillman Development to convert the 61k SF warehouse at 36 Bleecker into the 19-unit Schumacher apartments.) That’s because Maverick manages the entire process on behalf of the borrower, including negotiating the term sheet, so it knows the sponsor has a bulletproof business plan.
