OakNorth Bank Provides $25 Million Construction Loan to Oak Funding for Downtown Brooklyn Multifamily Project

OakNorth Bank Bank has closed a $25 million construction loan to New Jersey-based real estate lending platform Oak Funding, providing note-on-note financing to support the ground-up development of an 11-story, Class A multifamily building at 673 Fulton Street in Downtown Brooklyn, the bank announced July 13, 2026.

The transaction marks a continued lending relationship between OakNorth and Oak Funding, which was co-founded in 2022 by Jeremy Levart and Mark Meisner. Oak Funding specializes in debt and equity financing solutions across the U.S. commercial real estate market, with a focus on experienced sponsors delivering development projects.

Deal Structure and Property Details

The $25 million loan will fund the development of a 53-unit residential building that includes a 20% affordable housing component alongside ground-floor retail space. The transaction is structured as note-on-note financing, meaning OakNorth is capitalizing Oak Funding's senior construction loan rather than lending directly to the underlying developer.

The loan is secured against both the 673 Fulton Street development site and an adjacent fully leased retail property, which provides in-place income and additional collateral during the construction period. The project is located two blocks from the DeKalb Avenue subway station, offering connectivity to Manhattan.

Jeremy Levart, co-founder of Oak Funding, said the transaction reflects the platform's focus on community-oriented residential development. "Max and the wider OakNorth team have once again proven to be a responsive and thoughtful partner, bringing both credit expertise and practical flexibility to this transaction," Levart said in a statement. "This development exemplifies our mission of funding high-quality, community-focused residential projects, and we're excited to deliver a vibrant new asset in Downtown Brooklyn with a trusted lending partner at our side."

Max Saidman, Managing Director of Debt Finance at OakNorth, cited the submarket's fundamentals and the deal's structural characteristics as key factors. "We're pleased to support Oak Funding on another well-structured residential development opportunity in New York," Saidman said. "Downtown Brooklyn continues to demonstrate strong long-term fundamentals, driven by excellent transport links, sustained rental demand and a constrained future supply pipeline. Combined with an experienced sponsorship team and the additional security provided by the adjacent income-producing retail asset, this transaction reflects exactly the type of relationship-led lending we look to support as we continue growing our U.S. real estate portfolio."

OakNorth's U.S. Real Estate Strategy

Launched in September 2015, OakNorth describes itself as a bank for entrepreneurs. The institution has provided more than $22 billion in cumulative lending to entrepreneur-led businesses across the United Kingdom and the United States, and reports credit performance metrics it says place it among the top 1% of commercial banks globally. OakNorth is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK.

The note-on-note structure used in the 673 Fulton Street deal positions OakNorth as a capital provider to established lending platforms rather than a direct originator to developers. Oak Funding's use of OakNorth financing on multiple transactions indicates an ongoing lending relationship between the two institutions.

Market Context

OakNorth cited strong rental demand, excellent transport connectivity, and limited future housing supply in Downtown Brooklyn as factors underpinning the long-term investment case for the project. The bank noted that these dynamics, combined with the additional security provided by the adjacent income-producing retail asset and an experienced sponsorship team, were key considerations in its credit decision.

Sources

OakNorth – Oak Funding Closes $25 Million Construction Loan for Downtown Brooklyn Residential Development