BH3, Capstone Land $208M Loan For DoBro Conversion
A never-occupied Downtown Brooklyn office tower will get a second life as a residential building after locking in a construction loan.
Ran Eliasaf’s Northwind Group provided a $208 million loan for 141 Willoughby Street, a 24-story Class A tower that was completed in 2023 but never landed a tenant. BH3 Management and Capstone Equities are converting 16 upper floors into 239 rental apartments. The lower seven floors will remain office space.
Capstone and BH3 acquired the 355,000-square-foot building from Savanna through a foreclosure last year. Savanna bought the site for $28 million in 2014. In 2021, about seven years after acquiring the site, the developer landed $264 million in construction financing, a major coup at the time given the lack of office demand during the Covid pandemic.
Savanna bet corporate tenants would trickle into Downtown Brooklyn. But after the tower’s completion in 2023, it remained vacant. Savanna defaulted on its senior loan, and Capstone acquired the debt from PIMCO in January 2025 before initiating a UCC foreclosure. BH3 provided equity for the deal.
The new owners have tapped architect Fogarty Finger, which originally designed the tower, to spearhead the residential conversion. They plan on using the 467m tax incentive program.
“The building was designed to an institutional standard, with ceiling heights, natural light, floor plates, and amenities that will translate extremely well to residential use,” BH3’s Adam Falk said in a statement.
Amenities will include a fitness center, entertainment lounge, co-working space, wellness center, golf simulator, sports court, games room and children’s playroom. The commercial space on the first seven floors will have its own entrances and has been rebranded as 385 Gold.
A Newmark team is marketing the office space. Falk said the building “is seeing significant demand from large users native to Brooklyn as well as Manhattan tenants dealing with escalating occupancy costs for Class A space.”
Eastdil Secured Savills’ Rob Turner and Ethan Pond arranged the financing.
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