Peter Fine inks $70M construction loan for Harlem resi project

Project at 1998 Second Avenue will be along the next phase of the Second Avenue subway

TRD New York /
May.May 20, 2020 12:05 PM
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Developer Peter Fine has secured a $70 million construction loan for a massive residential project in East Harlem, a sign of life for the commercial lending market.

M&T Bank provided Fine’s Bolivar Development with the financing for the 178-unit project at 1998 Second Avenue, between 102nd and 103rd Streets. Thirty percent of the development’s units will be set aside as affordable, and the 12-story structure will have about 13,000 square feet of ground-floor retail and 500 square feet of community space.

The project, which Fine filed plans for in June 2019, should cost $91 million overall. The developer plans to finish the project by the first quarter of 2021 and have it ready for residents to move into by next November, despite the limits the pandemic has placed on construction activity.

Fine purchased the site in late 2018 for $28.5 million. It comprises eight parcels and lies right along the path of the next phase of the Second Avenue subway.

Although Fine said it was tougher to close on the financing than it would have been before the pandemic, he said he felt it was “a vote of confidence in New York City and the future of New York City by the bank and me.”

The loan was initially supposed to close in November, but one part of the assemblage took longer than expected to finalize, so it got pushed back to March, right when the coronavirus began to shut down all of New York, according to Drew Kessler, a vice president at M&T. He echoed Fine’s comment that, despite the pandemic, the bank still feels “extremely comfortable and confident about the project overall.”

Real estate loans in Manhattan experienced a sharp decline in April, the first full month after businesses shuttered to slow the spread of the coronavirus pandemic. The top 10 biggest loans of the month totaled just $742 million, a 72 percent drop from March. The $70 million M&T loan would have been the fifth largest one last month.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Despite record-low interest rates, tightened mortgage lending standards which may hamper the economic recovery. (iStock)

Tightening mortgage market threatens economic recovery

Tightening mortgage market threatens economic recovery
(Credit: iStock)

Loan applications to buy homes rise for fifth week

Loan applications to buy homes rise for fifth week
(Credit: iStock)

TRD INSIGHTS: MBA finds 8% of home loans in forbearance

TRD INSIGHTS: MBA finds 8% of home loans in forbearance
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan, Fortress are the latest firms to build up war chests

JPMorgan, Fortress are the latest firms to build up war chests
(Credit: iStock)

Applications to buy homes rise for fourth week with New York leading the way

Applications to buy homes rise for fourth week with New York leading the way
(Credit: iStock)

TRD Insights: MBA finds 8% of home loans in forbearance

TRD Insights: MBA finds 8% of home loans in forbearance
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...