Hub in New York City

Walker & Dunlop Arranges Recapitalization for $420 Million Apartment Tower in Brooklyn

by Channing Hamilton

NEW YORK CITY — Walker & Dunlop has arranged the recapitalization of Hub, a 55-story rental tower in downtown Brooklyn. The borrower, Steiner NYC, bought out a majority stake in the high-rise asset from its equity partner, J.P. Morgan Asset Management (JPMAM), giving the company full ownership. The sales price was not disclosed, but Walker & Dunlop stated that the transaction was done at a valuation of $420 million for the tower.

Located at 333 Schermerhorn St., Hub comprises 750 units in studio, one- and two-bedroom layouts. The building was developed by locally based Steiner in 2018. Upon its completion in 2018, Hub was the tallest building in Brooklyn. 

Walker & Dunlop advised Steiner on the recapitalization and secured $62.5 million in preferred equity from Meadow Partners to facilitate the purchase. Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno and Christopher de Raet of Walker & Dunlop represented Steiner NYC in the financing. 

In 2019, Walker & Dunlop also arranged construction financing, JPAMM’s equity investment and institutional permanent financing for Hub on behalf of Steiner NYC.

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