Expanding the successful Nitehawk brand was a major impetus behind adapting the cinema concept to additional properties. The original Nitehawk Cinema in Williamsburg, Brooklyn, was the first NYC movie venue to introduce restaurant quality food into the movie watching experience.

Our client was faced with a very different scale of investment than previously envisioned for an undeveloped parcel in Bushwick, Brooklyn. To purchase the historic Pavilion (c. 1920) in nearby ParkSlope would require substantial additional financing, enough to support an additional10,000 square feet of programming, a second restaurant, and allowances for extensive renovations.

1. The acquisition and renovation translated into a total cost basis of $49.2M invested in the two Nitehawk cinemas. The multi-phase effort secured $33.5M in cost-effective financing (4% fixed rate, 10 years), which was combined with the restructuring of existing debt.
2. Phase one involved refinancing the multi-million-dollar mortgage on the Williamsburg property, an asset with retail and residential leases. The refinancing reduced the rate on the existing mortgage while raising additional proceeds for the purchase of the Pavilion.  
3. Phase two was the acquisition and renovation of the Pavilion, involving  multiple financing tracks:bank loan, SBA 504 loan, and sponsor equity.

The decision to invest in the Pavilion complicated the financing strategies, but the advantages over the undeveloped parcel were clear. Restoring a much larger venue than originally planned promised increased revenue on many levels: additional seats, increased buying power for booking films, and more competitive dining options.

For several years, ThinkForward worked with our client to identify neighborhoods with similar movie-going audiences. Prior to the Nitehawk project, we structured $21M in construction financing for a site in Bushwick, Brooklyn. The project represented a straightforward ground-up construction effort on an undeveloped parcel of land.