Maxim Capital Group Provides $53.2M Senior Participation Financing to Dornin Investment Group and Torchlight Investors for Brooklyn Development

Why It Matters

The infusion of senior debt underscores continued lender confidence in Brooklyn’s high‑density multifamily market, even as developers navigate legacy financing disputes. It signals robust capital availability for projects near premium locations like Prospect Park.

Key Takeaways

• Maxim Capital lends $53.2M senior financing to Brooklyn development
• DIG and Torchlight bought $78M nonperforming loan in Dec 2023
• Project comprises 131 units across 101,000 sq ft near Prospect Park
• Lender confidence signals strong Brooklyn multifamily market despite prior lawsuit

Pulse Analysis

Brooklyn’s multifamily sector has become a magnet for institutional capital, driven by strong rent growth and limited supply near transit corridors. Lenders such as Maxim Capital are increasingly willing to provide senior participation loans that sit above mezzanine debt, offering developers a blend of equity‑like upside and debt‑like security. This financing model reduces the cost of capital for projects that have already demonstrated market demand, while allowing investors to capture upside as the assets stabilize and lease‑up.

The Windsor Terrace project at 57 Caton Place illustrates how distressed‑asset strategies can evolve into profitable developments. Dornin Investment Group and Torchlight Investors purchased a $78 million nonperforming senior note last December, effectively taking control of a 131‑unit, 101,000‑square‑foot building near Prospect Park. The site already secured a $66 million construction loan from Parkview Financial, which later became the subject of a lawsuit over alleged unpaid debt. By securing senior financing from Maxim, the joint venture can clear remaining construction gaps, complete the building this year, and move toward stabilization, mitigating the risk posed by the lingering litigation.

For investors, the deal highlights a broader trend: lenders are signaling confidence in high‑quality, location‑rich multifamily assets despite past financing hiccups. Senior participation loans like Maxim’s provide a safety net that can attract additional equity partners and accelerate lease‑up, ultimately enhancing returns. As Brooklyn continues to attract affluent renters seeking proximity to parks and transit, developers with solid underwriting and strategic financing structures are well positioned to capitalize on the market’s upward trajectory.

Deal Summary

Maxim Capital Group has extended $53.2 million of senior participation financing to a joint venture of Dornin Investment Group and Torchlight Investors for the 131‑unit 57 Caton Place project in Brooklyn’s Windsor Terrace. The loan supports the final stage of the nearly completed multifamily development after the partners acquired a $78 million non‑performing senior loan in December. The financing was negotiated by Ripco Real Estate.