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Thor Equities nabs financing for Amazon warehouse in Red Hook
Joe Sitt’s firm secures $76 million construction financing and $155 million JV equity recap New York / TRD Staff Share via Shortlink
Jeff Bezos of Amazon, Joe Sitt of Thor Equities and an aerial of the Red Hook site. (Getty, Thor, Google Maps)
Joe Sitt’s Thor Equities is one step closer to bringing Amazon to Brooklyn’s Red Hook neighborhood.
Thor Equities nabbed $76 million construction financing and a $155 million joint venture equity recapitalization for its warehouse property at 280 Richards Street, according to the Commercial Observer. The warehouse is 100 percent pre-leased to Amazon.
From left: Thor Equities’ 590 Fifth Avenue, the Mark Hotel and Wonder Works’ Vitre
Churchill Real Estate’s Justin Ehrlich has seen a lot during his time as a developer and lender in New York. He witnessed the collapse of the real estate market during the 2008 financial crisis, followed by the mad rush to build luxury condo towers in some of Manhattan’s swankiest neighborhoods.
But nothing compares to the past nine months, he said. “It’s not normal,” Ehrlich noted. “It’s the worst I’ve ever seen.”
He pointed to an unusual rise in Uniform Commercial Code foreclosures by mezzanine lenders, which he sees as a canary in the coal mine for a mound of distress expected to hit the market in the next year. While judicial foreclosures are still banned under an emergency order by New York Gov. Andrew Cuomo, UCC foreclosures on some high-stakes projects have been moving ahead in recent months since they can bypass state courts.
From left: Thor Equities’ 590 Fifth Avenue, the Mark Hotel and Wonder Works’ Vitre
Churchill Real Estate’s Justin Ehrlich has seen a lot during his time as a developer and lender in New York. He witnessed the collapse of the real estate market during the 2008 financial crisis, followed by the mad rush to build luxury condo towers in some of Manhattan’s swankiest neighborhoods.
But nothing compares to the past nine months, he said. “It’s not normal,” Ehrlich noted. “It’s the worst I’ve ever seen.”
He pointed to an unusual rise in Uniform Commercial Code foreclosures by mezzanine lenders, which he sees as a canary in the coal mine for a mound of distress expected to hit the market in the next year. While judicial foreclosures are still banned under an emergency order by New York Gov. Andrew Cuomo, UCC foreclosures on some high-stakes projects have been moving ahead in recent months since they can bypass state courts.