Doug Steiner, owner of Steiner Studios, has secured a $390 million construction loan for his proposed residential tower The Hub to be built at 333 Schermerhorn Street, Mortgage Observer has reported.
A record 54 story tower is planned for the site, which would be the tallest in Brooklyn. Excavation there began last November.
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His firm, Steiner NYC, received a first mortgage from Bank of America with private equity firm Apollo Management’s real estate arm, Apollo Global Real Estate, providing subordinate debt.
Steiner told Mortgage Observer, “BofA has done deals in our submarket, so they really understand our location and product, and share our enthusiasm for what we both expect to be one of the best buildings in New York City.”
In 2011, his firm acquired four parcels along the street corner there for $30 million. In 2012, Steiner said that he was interested in developing a 52-story, 720-unit tower that would cost anywhere from $325 to $350 million.
Steiner planned on putting up $100 million of his own money while relying on New York’s 80/20 program to acquire the rest of the need funding. The 80/20 program is where a developer of a new residential property agrees to reserve 20% of the building’s units for affordable rents in exchange for tax breaks and other considerations.
But the plans for an 80/20 development were not deemed to be feasible.
The project is located in an area of Brooklyn which has been designated by New York City as the Special Downtown Brooklyn District. This special district was established with the intention to stimulate growth in the area and the city has authorized the development of mixed use towers that meet certain standards and have no height restrictions.
Steiner is probably best known for the Brooklyn movie studios which he operates. Brooklyn-based Steiner Studios is the largest film and TV production complex on the East Coast. Steiner is currently at work expanding the 300, 000 square foot studios located at the Brooklyn Navy Yards by 328, 000 square feet to bring new stages, media offices and classrooms for Brooklyn College students studying film and entertainment. “Spider-Man, ” “Sex and the City” and “Boardwalk Empire” are just a few of the movies and television programs which have been filmed there.
