July 29, 2025 – New York, NY – Waterway Capital, LLC (Waterway Capital) is proud to announce the successful closing of a $201,904,000 credit tenant loan (CTL) for the construction of a newly completed 370,000 square foot office building located at 2440 Fulton Street in the Broadway Junction area of Brooklyn. The loan was closed in 2022 and supported the development of this critical public infrastructure project.
The primary occupant of the building is the City of New York, which, through its Human Resources Administration (HRA), has leased approximately 280,000 square feet within a dedicated condominium unit. The financing was structured based on the strength of the City’s lease, utilizing a CTL approach to deliver high-leverage, long-term, fixed-rate financing aligned with the lease term.
On May 1, 2025, New York City Mayor Eric Adams celebrated the grand opening of the facility, highlighting it as a state-of-the-art hub for vital social services in East Brooklyn.
“This transaction demonstrates how CTL financing was used to facilitate a civic infrastructure project,” said Thomas A. Sargent, President of Waterway Capital. “We’re proud to have played a role in helping the developer and the City bring much-needed resources to the community.”
CTL Highlights
Waterway Capital acted as Placement Agent for the construction-to-permanent debt financing of the building. The $201,904,000 CTL loan included a rated balloon. The financing had a term of 23.7 years and was underwritten at a 1.03x debt service coverage ratio. Staged funding reduced the amount of interest carry during the construction period.
About Waterway Capital
Waterway Capital is a FINRA/SEC registered broker-dealer and investment bank, providing customized financing solutions for developers and owners of commercial real estate. With decades of experience, the Waterway team has built a reputation for advancing the industry with innovative idea.
Disclaimer
This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. All investments include risk, including potential loss of principal.
