G4 Capital Partners, a prominent name in real estate financing, has emerged as the key lender in a significant recapitalization deal for 475 Fifth Avenue. The financing, totaling $160 million, was secured by RFR, a well-known real estate investment firm. This substantial financial package from G4 Capital Partners is divided into three distinct notes, comprising a $61.2 million piece, a $42 million piece, and a $13.7 million piece, showcasing the nuanced approach of G4 Capital Partners to complex real estate financing. Public records identify Jason Behfarin, managing partner and co-founder of G4 Capital Partners, as the mortgagee in this transaction, further highlighting the firm’s direct involvement and leadership in major deals.
While requests for comment from G4 Capital Partners and Schwartz, the property owner, went unanswered, the details available through public records and previous reports paint a clear picture of the evolving landscape of 475 Fifth Avenue and the surrounding Brooklyn area. Schwartz, known for a portfolio of rental properties in Brooklyn, has recently filed permits to partially demolish the former Morris J. Golombeck Spice Company factory located at this site. Plans submitted to the city indicate intentions to construct a 7-story residential building on the northern half of the factory lot, signaling a significant redevelopment project underway, backed by the financial support of partners like G4 Capital Partners.
The site at 960 Franklin Avenue, encompassing 67,895 square feet, has seen considerable activity in recent years. Prior to Schwartz’s acquisition, Hager and Hagler purchased the same three lots for $42.8 million in November 2022 from Abraham “Zev” Golombeck. Golombeck, the former owner of the spice factory, had previously collaborated with developer Ian Bruce Eichner’s Continuum Company. Their ambitious plan in 2018 envisioned two 39-story residential towers with 1.4 million square feet, half of which were designated for affordable housing. However, this large-scale project faced obstacles and ultimately failed to materialize when the City Planning Commission rejected their rezoning application in September 2021. Community opposition and criticism from then-Mayor Bill de Blasio, citing concerns about shadows cast on the Brooklyn Botanical Garden, contributed to the project’s demise. Consequently, ownership of 960 Franklin Avenue reverted to Golombeck in 2022, as the initial deal was contingent on rezoning approval.
Now, as Schwartz proceeds with development on the northern portion of the former factory site, Eichner has renewed efforts for the southern half. The developer has revived plans for a housing development and is once again seeking city approval to rezone the lots. This revised proposal outlines a 14-story residential building with 475 units, according to Department of City Planning records. The ongoing development plans for 960 Franklin Avenue, with G4 Capital Partners playing a crucial financing role in the adjacent 475 Fifth Avenue project, demonstrate the dynamic nature of Brooklyn’s real estate market and the strategic investments being made by firms like G4 Capital Partners.
