The Real Deal New York

RXR lining up $75M in construction financing for BK rental

State Housing Finance Agency considering loan on 363-unit 810 Fulton Street
By Rich Bockmann | November 23, 2016 01:50PM

810 Fulton Street and Scott Rechler

810 Fulton Street and Scott Rechler

RXR Realty is lining up $75 million in construction financing for its first residential development in the city: a planned 363-unit rental building at the border of Fort Greene and Clinton Hill.

The Long Island-based developer – known mostly in the city for owning commercial properties like the Starrett-Lehigh Building and 230 Park Avenue – is looking to get $75 million in tax-exempt bond financing from the state Housing Finance Agency, a public notice shows.

When RXR TRData LogoTINY acquired the leasehold on the development site at 810 Fulton Street this summer for $29.6 million, it already had a 421a tax exemption in place under the previous iteration of the program that expired earlier this year.

That means RXR will be required to set aside 20 percent of the project’s units at below-market rents, instead of the 25 to 30 percent required under the new tentative agreement hammered out by the Real Estate Board of New York and the Building and Construction Trades Council of Greater New York.

RXR plans to build a 12-story, 400,000-square-foot building with studios and one- and two-bedroom units, per the company’s website.

A representative for RXR was not immediately available for comment. The HFA has scheduled a hearing on the application for Dec. 12.