The Jay Group landed a construction loan for two buildings in its sprawling multifamily development in Downtown Brooklyn.
Bank Hapoalim and Israel Discount Bank provided the $105 million loan for two 99-unit buildings. The properties are part of a larger luxury development spanning several lots, including 104-106 Fleet Place, 159 and 165 Willoughby Street and 287 Flatbush Avenue Extension.
Arrow Real Estate Advisors’ Morris Betesh, Omar Ferreira and Jacob Petrovic arranged the financing.
Jay Group, led by Jacob Kohn, filed plans last year for 450 units spread among five buildings, likely due to the unusual terms of the state’s 485x tax break. A $40 wage floor kicks in for developments with 100 or more units, prompting many developers to scale back the number of apartments to 99. The buildings will include rentals and commercial space, according to the plans filed by FA Architects & Engineers.
The land is situated within the Special Downtown Brooklyn District, where developers could capitalize on tax incentives for large mixed-use projects with affordable housing components.
After 485x passed last spring, many industry insiders joked that decades from now, people will look back and wonder why the city erected so many 99-unit buildings.
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