Walker & Dunlop Advises on $420 Million Recapitalization of Trophy Brooklyn Rental Tower, Hub

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.

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Walker & Dunlop Advises on $420 Million Recapitalization of Trophy Brooklyn Rental Tower, Hub (Photo Credit: Steiner NYC)

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.”

Steiner traces its roots to 1907. Notable projects include: Steiner Studios, New York's only Hollywood-style film and television production facility, consisting of 900,000 square feet of soundstages and support space on 50 acres in the Brooklyn Navy Yard; "Steiner East Village," an 82-unit luxury condominium project that was the best-selling building in Manhattan upon completion; and "Admirals Row," a 686,000 square foot mixed-use complex at the Brooklyn Navy Yard featuring the first Wegmans Supermarket in New York City.

In 2024, Walker & Dunlop’s Capital Markets group sourced capital for transactions totaling over $16 billion from non-Agency capital providers. This vast experience has made them a top adviser on all asset classes for many of the industry’s top developers, owners, and operators. To learn more about Walker & Dunlop’s broad financing options, visit our website.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

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