Landau Properties, in partnership with the Mizrachi family’s Third Millennium Group and Midtown Equities, has completed the purchase of 205 Montague Street, the companies announced in a news release. The deal was financed with $113 million in senior secured debt from Northwind Group and $100 million in equity, including $25 million in preferred equity from Atlas Capital Group.
The financing includes the acquisition and pre-development phases of the project, according to the release.
The closure comes almost two years after Landau, the former CEO of Fortis Property Group, submitted plans to the Ministry of Buildings for a 47-storey tower.
The mixed-use project includes 46 apartments, 90 rental apartments and 40,000 square feet of retail space. Construction is expected to begin early next year.
The release shows that the Cayre family’s Midtown Equities, which purchased the site for $33 million in 2010, will remain as one of the project’s sponsors. The family had put the site up for sale in 2015 for $200 million.
The release does not indicate what plans, if any, are in place for the adjacent 195 Montague Street, which was included as part of the original planning application Landau submitted last year.
The site is located at the intersection of Brooklyn Heights and Downtown Brooklyn. When completed, the 650-foot tower will be one of the neighborhood’s tallest buildings, a marked departure from the brownstone-lined streets that have seen record townhouse purchases.
Raffi Landau of Estreich represented Northwind and Aaron Jungreis of Rosewood Realty Group represented Atlas in the deal.
The project “is well positioned to capitalize on continued demand in this supply-challenged neighborhood,” Ran Eliasaf, founder and managing partner of Northwind, said in a statement.
Landau makes good on his prediction made during a panel The real deal‘s New York Forum, when he said it’s a “damn good time to be building in New York City.”
The developer’s other projects since leaving Fortis have been in South Florida. He was reported sold out earlier this month the luxury waterfront project of Indian Creek Residences & Yacht Club in the Bay Harbor Islands, where he is also developing offices.
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