In This Article:
BETHESDA, Md., March 13, 2025--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today the successful $420 million recapitalization of Hub, a trophy 750-unit high-rise multifamily building located in the heart of downtown Brooklyn.
The Walker & Dunlop Capital Markets team, led by Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno, and Christopher de Raet, acted as exclusive advisors to Steiner NYC, successfully enabling them to buy out their equity partner, J.P. Morgan Asset Management.
The Walker & Dunlop team advised Steiner on the $420 million recapitalization and also arranged $62.5 million of preferred equity from Meadow Partners to support the purchase. This move solidifies Steiner’s full control of Hub, marking a strategic shift in the ownership structure of one of Brooklyn’s best-in-class, high-rise residential buildings.
"We are pleased to serve as a flexible and creative partner to Steiner NYC through our preferred equity financing solution for Hub," said Marc Mechanic, partner at Meadow Partners. "Meadow has significant experience as both an owner and lender operating in New York and this transaction reflects our ability to apply our extensive knowledge of the market to support a high-quality multifamily project in an attractive Brooklyn neighborhood."
"It’s been a privilege to work alongside Steiner to execute this unique project," said Aaron Appel, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. "This deal stands apart from traditional financings due to its complex structure, which involved an equity buyout and the sourcing of preferred equity to help capitalize the transaction. We are excited to see Steiner gain full ownership of this landmark property."
Developed by Steiner, Hub, at 55 stories, was the tallest building in Brooklyn upon completion in 2018. The tower, at 333 Schermerhorn Street, offers studio, one-, and two-bedroom rentals with stunning views of New York Harbor, the Manhattan skyline, and multiple bridges. Hub is located at the confluence of Boerum Hill, Fort Greene, Brooklyn Heights, and Park Slope, and boasts 12 subway lines in a 2-block radius. W&D previously arranged the construction financing, JPMAM’s equity investment, and institutional permanent financing in 2019.
"Walker & Dunlop added real value. This deal would not have gotten done without them. And it got done fast – two months from contract signing to closing," said Doug Steiner, Chairman of Steiner NYC. "We obviously take enormous pride in Hub, so we are thrilled to now have full ownership."