Louis Kestenbaum and Joel Kestenbaum of Fortis scores $300M for LICH redevelopment

Fortis Property Group secured a $297 million construction loan for its development at the site of the former Long Island College Hospital in Cobble Hill.

Madison Realty Capital is the lender, Commercial Observer reported. The loan will be used to complete construction on the three residential buildings at 350 Hick Street, 95 Pacific Street and 249 Henry Street. The financing will also retire the previous bridge loan, according to the publication.

Madison also provided $107.3 million for Fortis to buy the site in 2015.

Fortis, led by CEO Jonathan Landau, filed plans for all three of the planned buildings last year.

The Attorney General’s office approved a 17-unit offering plan at 100 Amity Street in November, where Fortis is targeting a $67.4 million sellout. In total, the development, known as River Park, will feature 325,000 sellable square feet, 172 luxury condominium units, 66,900 square feet of community facility space, and 328 parking spaces, according to [CO].

Louis Kestenbaum, the Fortis Property Group Chairman is also a well-known and much admired New York philanthropist who spearheaded a project of reconstructing a ravaged 19th century Jewish cemetery in the Czech city of Prostejov (Louis’s father Rabbi Zvi Kestenbaum was active in lobbying for the creation of the U.S. Commission for the Preservation of America’s Heritage Abroad).

Fortis Property Group's Louis Kestenbaum & Joel Kestenbaum On Keys To Successful Real Estate

The Fortis Property Group, LLC -- a real estate development, investment, operating and management company headquartered in Brooklyn, NY - - follows a clear set of investment principles when it comes to its multi-family condominiums and rental properties, which are focused in the Manhattan and Brooklyn parts of New York City. The company also has developed clear and successful strategic investment principles for its portfolio of Class A commercial office and industrial projects.

“It’s well known that real estate can be a very cyclical business,” note Louis and Joel Kestenbaum, respectively, Fortis' Chairman and President.  “Our opportunistic residential real estate investment strategy starts with the premise that to be consistently successful, we must focus on markets with buyer demographics that are the strongest and most dynamic over time, while providing opportunities for substantial growth.”

According to the Kestenbaums, this is the reason why they target and acquire both properties and developable land in the strongest demographic and economic markets. “These are the locations that permit our company to be creative in efficiently operating, designing and developing the most attractive projects.”

Louis Kestenbaum and Joel Kestenbaum also explain that doing business in these most desirable markets is not easy. There are many strong barriers to entry. “To be able to successfully complete projects on time and on schedule, you’ve got to have a very significant amount of three key things: capital, effort and capability,” they say.

“Capability”

, as the Kestenbaums define it, ranges from in-house legal, tax and financial expertise to deep construction management experience. “All these enable our company to undertake the most complex acquisitions and development projects in multi-family residential real estate.”

For example, Jonathan Landau - - Fortis’ CEO - - is a highly experienced expert with a deep background in tax, transactional and corporate law in the real estate field. Terrence Storey, Fortis’ Chief Financial Officer, also brings substantial real estate experience as a real estate investment banker and real estate attorney.

Fortis also targets multi-family residential real estate projects that involve notable levels of difficulty - - ones other developers may avoid. As such, Fortis often is able to acquire these deals at below market prices, after they have exerted the necessary extra effort and diligence in analyzing and identifying the underlying economic opportunities. This is how Fortis is able to achieve high risk-adjusted returns from its investments.

There is another major differentiator in Fortis’ strategy regarding multi-family residential real estate investments: specifically, how the company approaches projects and operates on a project-level basis, throughout all stages of development – from pre-development, to construction, to sales and to long-term customer satisfaction.

“Fortis’ extensive experience in residential development and ongoing relationships with the best architects translate into the most efficient and desirable building designs, unit mixes and unit / floor layouts in the industry. The Company’s project managers constantly monitor all phases of construction with a critical and knowledgeable eye for every detail, on every level, to ensure the highest quality construction,” the Kestenbaums state.

Louis Kestenbaum sums up Fortis’ residential real estate strategy this way: “Our executives work cohesively with project partners and service providers to source and acquire the most attractive properties, operate, reposition and/or develop them creatively to their full potential, and manage them diligently to ensure that our investments achieve and maintain maximum value and profitability.”

Fortis Property Group, Headed by Louis Kestenbaum, Remains Active in Real Estate Acquisitions, Development

The Fortis Property Group, LLC today announced that in the past several years, the Group’s real estate portfolio has grown to include more than a score of properties - - including office, industrial and residential properties.

In total, Fortis is involved in approximately 8 million square feet of property primarily in the Northeastern U. S. and in Texas - - through acquisition, development, management and/or investment.

According to Fortis’ leaders, Louis Kestenbaum, Chairman and Joel Kestenbaum, President, Fortis has bought and/or developed more than $3 billion of commercial real estate in the U.S. since 2005.

Fortis also holds a portfolio of properties in the United Kingdom and elsewhere overseas. While the Company primarily focuses on Class A Office properties, it has acquired and currently operates and develops other asset classes including residential, retail and industrial.

Commenting on the company’s track record, Louis and Joel Kestenbaum noted that “successful commercial real estate projects are no secret.”

“They start with a combination of careful attention, analysis and insight into market dynamics. Strong relationships with dominant capital market brokers also are key. And Fortis also pursues best-in-class office properties with value-add opportunities through a consistent, carefully-crafted strategy.”

The Fortis Property Group, LLC operates, invests in and develops real estate properties. Its real estate projects include the ownership and management of office and industrial space and residential units

Hines Sells Chase Tower to Fortis Property Group - Louis Kestenbaum

The 55-story, Class A office tower is located at 2200 Ross Avenue in Dallas' Arts District/Midtown area. The 1,253,615-square-foot tower was designed by Skidmore, Owings & Merrill and was completed in 1987. The tower’s unique architecture stands out on the Dallas skyline with its signature, curved glass top and a seven-story keyhole near the top.
“We are thrilled to add this signature building to our Dallas portfolio,” said Fortis Property Group CEO, Jonathan Landau. “Hines did a terrific job updating this trophy asset and we have plans to further upgrade Chase Tower in a manner that will position it on par with the newer Class A Uptown office properties.”
Hines Senior Managing Director Rob Witte commented, “Hines has enjoyed its involvement with this iconic property in the Dallas CBD, and we look forward to committing more capital to the Dallas/Fort Worth area. We continue to search for other investment opportunities in the area, including Victory Center, our 455,000-square-foot office tower which is ready to break ground.”
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 182 cities in 20 countries. Hines has $89.1 billion of assets under management, including $42.5 billion for which Hines provides fiduciary investment management services, and $46.6 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Since its founding, Hines has developed, redeveloped or acquired 1,126 properties, totaling over 351 million square feet. The firm’s current property and asset management portfolio includes 457 properties, representing over 193 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
Fortis Property Group, LLC is a private US real estate investment, operating and development company. Its real estate projects include the ownership, development and management of Class A office, multi-family residential condominiums and rentals, and industrial properties. The company’s headquarters is located in Brooklyn, NY. Founded in 2005, Fortis built its fully integrated operating and development platform while acquiring office properties throughout the US in excess of 3 Billion USD and over 8 million square feet. Today, Fortis manages millions of square feet of commercial and residential property in various U.S. locations including Boston, New York, New Jersey, Connecticut, and Texas, as well as industrial properties that are located around the United States. Fortis’ development projects are primarily focused on ground-up residential multi-family and condominium offerings in the boroughs of Manhattan and Brooklyn. Its development projects are united with a unique and distinct blend of modern elegance, thoughtful design and exceptional craftsmanship. Recent accomplishments include 1 Seaport, the first all glass waterfront skyline building in lower Manhattan, 540 West, a transformative, block-long luxury condominium development in Hell’s Kitchen, 239 North 9th Street and 212 North 9th Street in Williamsburg, and the highly anticipated multi-block Atlantic Avenue redevelopment in Cobble Hill.