Z+G Property Group Gets $12M Loan to Buy Fort Greene Mixed-Use Building

Key facts

Address

680-686 Fulton St., Fort Greene, Brooklyn (The Portland)

Loan amount

$12 million acquisition loan

Lender

Santander

Arranged by

CBRE Capital Markets (Shamir Seidman, Judah Hammer, Jeff Feldman)

Borrower

Z+G Property Group

Loan terms

About 70% loan-to-value, five-year term, initial interest-only period

Building

Four-story neo-Renaissance mixed-use building from about 1900; studios to two-bedroom apartments above ground-floor retail

Retail tenants

Greenlight Bookstore and Yours Truly stationery shop

What it means

The highlights

1. Santander is the lender. CBRE Capital Markets arranged the deal.
2. Loan is about 70% loan-to-value, five-year term, initially interest-only.
3. The Portland, 680-686 Fulton St., is a four-story building from about 1900.

Why it matters Landlords

Lenders are still financing older Brooklyn mixed-use buildings with stable retail tenants, a sign of credit available to small owners.

Not known yet

• The purchase price and closing date
• How many apartments the building has and what the rents are
• Whether any apartments are rent-stabilized
• Who the seller is and whether the new owner plans any work at the property

Background

In New York City, a building sale does not by itself end existing residential leases. Tenants generally keep their lease terms under a new owner. If an apartment is rent-stabilized, that status stays with the unit after a sale. Tenants can request their apartment's rent history from New York State Homes and Community Renewal (HCR) to check its registration status.