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New York

Gotham Org lands more loans for Lower East Side development

$50M in construction and project loans for 60 Norfolk Street

60 Norfolk Street with Gotham Organization Chairman Joel Picket and CEO David Picket (Gotham/Dattner Architects)
60 Norfolk Street with Gotham Organization Chairman Joel Picket and CEO David Picket (Gotham/Dattner Architects)

Gotham Organization has secured $50.4 million in financing for the second phase of its massive Lower East Side development project.

Lender Wells Fargo issued a $22.5 million loan for a 16-story building at 60 Norfolk Street, part of the Broome Street Development project, according to loan documents filed with the city. The city’s Department of Housing Preservation & Development provided a $22.4 million loan, while Barings has committed to replace the construction loan at completion with a $5.45 million loan.

The building is slated to have 115 units of affordable housing for seniors. It has received $12.3 million in Low-Income Housing Tax Credits, according to a source familiar with the project. An additional $18.5 million worth of credits are due to be provided later.

Gotham, Wells Fargo and Barings did not immediately respond to requests for comment.

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The second phase of the development will also include a new worship space and cultural heritage center for Beth Hamedrash Hagodol. The synagogue that once stood on the site, which dated back to the mid-19th century, had fallen into disrepair and was destroyed by a suspicious fire in 2017.

The first phase of the development at 55 Suffolk Street landed a $162.4 million construction loan in December. That building will rise 30 stories and have 378 rental units, 25 percent of which — or 94 units — are set aside as affordable housing, according to the developer. The building will also include the Chinese American Planning Council’s 40,000-square-foot headquarters.

Altogether, the Broome Street Development will have just under 500 rental units, 209 of which will be affordable, along with community facilities and retail space.

Tags
Affordable HousingGotham OrganizationLower East SideSenior Housing