Silverstone and Related close preferred equity on Brooklyn's One Sunset

Silverstone Partners, with Related Fund Management, closed a preferred-equity investment into One Sunset, a newly built 14-story multifamily property in Brooklyn's Greenwood Heights. It holds 187 apartments. The investment recapitalizes the building, built under the final iteration of the Affordable New York program, known as 421-a, and designates 25 percent of units as affordable. IREI reported the deal.

The deal is credit-enhanced by significant sponsor equity from the property's co-developers, two prominent local developers. Manoj Ramprakash, Silverstone's founder and managing partner, said the deal validates his firm's focus on high-quality multifamily in markets with strong local economies. He added that a flexible mandate lets Silverstone move across the capital stack to capture relative value.

This is lease-up capital in the form the current cycle prefers. Stabilized assets clear at benchmark prices; rent-up buildings get financed separately — the dual-pricing condition this publication has argued defines the multifamily market. Rather than construction or mezzanine exposure, Silverstone and Related are buying a preferred position in an already-built Class A asset, leaving sponsors to absorb operating risk during stabilization. Preferred equity is quietly doing the work the old mezzanine tranche used to do. The next repricing will hit lease-up sponsors before it touches lenders' books.