Acumen Capital Partners has secured a $125 million three-year loan to refinance a South Williamsburg, Brooklyn, industrial asset. Värde Partners issued the floating-rate financing, which CBRE brokered, according to a report from the Commercial Observer.
The location at 630 Flushing Avenue spans 575,000 square feet across eight stories, headlined by 11.5 – 15 Feet ceiling heights, seven elevators and more than 50,000 amps of electricity. Some amenities include conference rooms, outdoor space, secured parking and a security center.
Currently, the property is 88 percent leased to tenants involved in education, media, fashion, food, technology and even non-profit sectors, according to CO.
The site, which was originally built in 1849, has been repurposed multiple times and, for a while, served as Pfizer's headquarters until closing in 2008. Then, in 2011, Acumen took 630 Flushing off the pharmaceutical giant's hands for $26 million and transformed the asset into flex industrial space.
“With Värde’s support, we are well positioned to continue delivering the flexibility our valued tenants need to support their growth, while also adding to our tenant community," Ashish Dua, founder of Acumen Capital Partners, said in a statement, according to CO.
This isn't the first time that a former Pfizer headquarters in New York has made news across CRE. In fact, over the past year, David Werner Real Estate Investments and Metro Loft Management have been working on transforming the former Pfizer site at 235 East 42nd Street and 219 East 42nd Street into 1,600 multifamily units. Northwind Group previously provided two separate loans ($135 million and $75 million) to support the efforts.
Meanwhile, industrial is going through a bit of a rough cycle in New York. CBRE, in a recent market report, said that third-quarter vacancy (6.4 percent) was at a five-year high, while leasing tumbled by 51 percent versus the previous three months to 727,000 square feet. On the bright side, asking rents were up eight percent quarter-over-quarter and nine percent year-over-year.
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