NEW YORK CITY—Capital One has provided an $80 million construction/mini-perm loan for the soon-to-be-completed 194-key 1 Hotel on the Brooklyn waterfront, which initially was part of a larger financing package that included a 107-unit recently completed condominium building.

Capital One previously provided a $160 million loan to finance the project's initial construction to the borrower—a joint venture of the Starwood Capital Group and Toll Brothers. SVP Paul Verdi in Capital One's commercial real estate group originated the new transaction.

“It is an exceptional project in a one-of-a-kind location being undertaken by outstanding sponsors,” says Verdi. “We are very pleased to be a part of it.”

The 1 Hotel Brooklyn Bridge will be the third property in Starwood's 1 Hotel brand. The 1 Hotel brand, which has already won numerous awards, is mission driven as it strives to show its guests that they can live well but in an ecologically sustainable manner. The 1 Hotel Brooklyn Bridge is located on Brooklyn's East River waterfront, with unobstructed views of the Brooklyn Bridge, downtown Manhattan, and New York Harbor.

In addition to the 194 rooms, the hotel will feature 20,000 square feet of meeting/event space, a 24-hour fitness center/spa, a rooftop bar and pool, and a 12,000 square-foot indoor/outdoor restaurant emphasizing local and organic ingredients. The property has been built to LEED standards.

“As can be expected with a deal of this complexity, both the structure and the proceeds evolved as time went on,” says Austin Nowlin, head of capital markets at Starwood Capital Group. “Even as circumstances shifted, Capital One displayed both the flexibility and resourcefulness to devise an attractive solution for us.”

“It is an exceptional project in a one-of-a-kind location being undertaken by outstanding sponsors,” says Verdi. “We are very pleased to be a part of it.”

Instant Insights /

Luxe Brooklyn Hotel Secures Construction Loan

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