Brause Realty & Lonicera Partners Secure $75M Financing from J.P. Morgan & First Citizens Bank for Mixed-Use Development in Murray Hill

Brause Realty Inc. and Lonicera Partners LLC have finalized a significant $75 million construction financing arrangement for 255 East 39th Street, a prominent mixed-use development situated in Murray Hill. This article delineates the key details surrounding the financing deal and the project's features.

Parties Involved

The financing was facilitated by J.P. Morgan and First Citizens Bank, marking their role as the loan providers. Lonicera Partners LLC is identified as the project's development manager, underscoring their pivotal position in overseeing its execution.The Cushman & Wakefield Equity, Debt & Structured Finance team, represented by Gideon Gil, Lauren Kaufman, Zachary Kraft, and Cecelia Galligan, acted on behalf of the  borrower during the transaction. Their involvement highlights the expertise and assistance provided to Brause Realty Inc. and Lonicera Partners LLC throughout the financing process.

Project Overview

255 East 39th Street is slated to be completed by the fourth quarter of 2025, boasting a 20-story structure that will encompass 157 apartments, offering scenic East River views. Additionally, the development will include 4,687 square feet of commercial space, catering to diverse tenant needs.

Affordable Housing Component

An integral aspect of the project involves the incorporation of affordable housing units, in adherence to the Affordable New York 421-A real estate tax abatement program. This underscores the developers' commitment to fostering inclusivity and meeting housing needs within the community.