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RXR Gets $226M Goldman Sachs Loan for LIU Project in Brooklyn

Goldman Sachs has handed RXR Realty a $225.6 million financing package for the developer’s building project on the campus of Long Island University in Brooklyn, according to city property records.

The deal, split among a $155.9 million building loan and a $69.7 million project loan, will fund a $300 million initiative to build a new residential tower on LIU’s campus in Fort Greene location. As described in prior reporting by Newsday, the development will consist of a residential high-rise, and a garage structure with a rooftop athletic field. A deed filed simultaneously with the mortgage paperwork shows RXR paying LIU $76.4 million for the site, a plot at 196 Willoughby Street near the intersection of Flatbush Avenue and DeKalb Avenue.

As part of the deal, LIU will also reap $41 million in cash from RXR, as per Newsday. RXR’s acquisition includes air rights from LIU, which will enable it to build a 34-story tower with 476 apartments, about 30 percent of which will be designated for lower-income tenants. The two sides first agreed to the deal’s terms about 18 months ago. A neighborhood resident told Commercial Observer that demolition on a portion of the site began in the last few days.


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Representatives for RXR and Goldman Sachs did not immediately respond to inquiries.

Even at 34 stories, the RXR project will be dwarfed by a neighboring project that’s also underway: 9 DeKalb Avenue, where JDS Development Group is at work on a 1,000-foot residential skyscraper that will be the tallest building in New York City outside of Manhattan. Work on the Shop Architects-designed building is aimed at a completion date in 2022.

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Commercial Observer