Steiner Lands $149M for Brooklyn Navy Yard Property
Steiner NYC has landed $148.5 million for the refinancing of Admirals Row, a 696,000-square-foot, mixed-use property part of Brooklyn Navy Yard. Deutsche Bank provided the note in a transaction arranged by Walker & Dunlop.
Previous debt included a $228 million construction loan issued by M&T Bank and BNY Mellon in 2018, as well as a $50 million loan originated by the New York City Regional Center.
Admiral Row encompasses more than 350,000 square feet of light industrial and creative manufacturing space leased by the Brooklyn Navy Yard Development Corp., as well as 160,000 square feet of retail including the 75,000-square-foot space leased by Wegmans—the company’s first supermarket in New York City.
In addition, the 8-acre property comprises a 5,000-square-foot community facility and a parking structure and lot with 701 spaces combined.
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Located at 399 Sands St., Admiral Row is within 1 mile from Interstate 278—also known as the Brooklyn-Queens Expressway—as well as the Manhattan and Brooklyn bridges. Steiner Studios, a film and television production facility encompassing 900,000 square feet of soundstages and support space, is likewise 1 mile away.
The Walker & Dunlop team that represented and advised Steiner NYC in securing the financing included Senior Managing Directors Jonathan Schwartz, Aaron Appel, Keith Kurland and Adam Schwartz, together with Managing Director Michael Diaz and Capital Markets Specialist William Herring.
Overhauling New York City’s largest industrial campus
Admirals Row is part of the $2.5 billion Brooklyn Navy Yard redevelopment project. Plans call for the creation of 5.1 million square feet of manufacturing space, as well as the improvement of the Yard’s connectivity with the surrounding neighborhoods. More than 450 businesses operate within the Yard, generating upward of $2 billion annually for the city.
The Admirals Row site formerly housed the officers of the Navy Yard throughout buildings constructed before the 1900s. However, the Yard closed in 1966, and the residences were abandoned in the 1970s. Decades later, the site changed hands and the Brooklyn Navy Yard Development Corp. took ownership.
Financing development in the Big Apple
Several entities support development throughout the five boroughs. One of them is The New York City Regional Center.
The NYCRC has provided nearly $1.6 billion in financing over the past 15 years for real estate and infrastructure projects throughout Brooklyn, Queens, Manhattan and the Bronx. Beside financing Steiner’s Admirals Row, the company also funded the Navy Yard redevelopment’s first phase with a $60 million loan.
New York City outer boroughs’ new industrial leasing activity clocked in at 2.2 million square feet during the first three quarters, representing an 18.7 percent spike year-over-year, according to a report by Cushman & Wakefield.
Despite the heightened activity, the industrial vacancy rate stood at 5.1 percent in September—marking an 80-basis-point increase compared to June—the report shows. The index hasn’t been over the 5 percent mark since 2020.
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