A former Salvation Army distribution center at 26 Quincy Street in Brooklyn's Clinton Hill neighborhood is slated to be internally renovated into a 49 condominium units by development partners Loktech Group and Meral Property Group. The partners will also build a new apartment building of 41 rental units on the adjacent lot at 10 Quincy Street.
Financing for the acquisition and redevelopment of the two properties will come from NYC-based S3 Capital, which has approved a $50 million short-term loan to the development team, noting that their previous work together gives the lenders confidence that the project will be completed timely and successfully.
According to S3 co-founder and principal Robert Schwartz, future paydown of the debt will come from two sources, based on the split nature of the development: individual unit sales from the condo portion, plus a permanent refinance for the rental component. This type of creative financing solution is a specialty of S3’s, Schwartz says.
Back in July of 2018, the Salvation Army announced that it would be shuttering its thrift store at the 120-year-old brick building that the organization had owned and operated for decades. The sale of 26 Quincy was part of a concerted property unloading the London-based Protestant charity is using to fund its global operations.
The Francis Kimball-designed warehouse was originally built in 1899 for venerable Brooklyn department store Frederick Loeser & Co. While it displays a stately combination of American Romanesque Revival and Venetian Gothic styles and many original details, the building does not have landmark status. However, since the redevelopment plans don't include any façade alterations or additional stories, the structure’s unique, historical look will remain.
Construction plans have already been approved by the Department of Buildings (DOB) and the work is expected to begin this month. With an approximate 20-month timeline, the project should be completed in the fall of 2021.