BY CATHY CUNNINGHAM MAY 31, 2018 11:22 AM
Eyal Ofer’s Global Holdings Group has made a $100 million preferred equity investment in the development of 25 Kent in Williamsburg, Brooklyn, Commercial Observer can first report.
Rubenstein Partners and Heritage Equity Partners are currently co-developing the eight-story, 500,000-square-foot mixed-use commercial and industrial property, due to come online by the end of 2018.
Rubenstein Partners secured the funding for the project, which occupies an entire block next to the East River waterfront.
“Given their long track record with some of the city’s most transformative developments, Global Holdings’ investment in 25 Kent further demonstrates the prestige of this project and the broader opportunity for asset value creation in Williamsburg’s commercial market,” said Jeff Fronek, Rubenstein Partners’ director of investments. “As the first major office development in Williamsburg in decades, 25 Kent offers companies a unique opportunity to truly meet the tech and creative workforce where they live and play.”
Global Holdings Group, one of three companies owned by Monaco-based billionaire Ofer, is known for its investments in iconic office buildings, hotels and luxury residential developments. Its portfolio comprises more than 100 properties and 2,500 hotel rooms, including 15 Central Park West and 120 Park Avenue.
“Global Holdings is excited to be involved in a dynamic project like 25 Kent, which is a strong fit for our team and portfolio of properties,” Ofer said in prepared remarks. “We look forward to strengthening our relationship with Rubenstein Partners, and to playing a key role in a landmark development that will help cement Brooklyn’s status as a leading tech hub.”
Rubenstein Partners’ private equity Fund II, together with Toby Moskovits’ Heritage Equity Partners, acquired 25 Kent Avenue in December 2015 and Wells Fargo and Natixis provided a $197 million construction loan to the project in August 2016.