Bronx multifamily development gets $63M loan

30% of 151 units to be set aside as affordable housing

New York /
Jun.June 16, 2021 02:38 PM
322 Grand Concourse in the Bronx and Martin Nussbaum of Slate Property Group and Scale Lending (Google Maps, Slate)

322 Grand Concourse in the Bronx and Martin Nussbaum of Slate Property Group and Scale Lending (Google Maps, Slate)

Simon Kaufman’s YS Developers scored a $63 million construction loan for a 14-story, 151-unit residential development in the Bronx.

Scale Lending, the financing arm of Slate Property Group, provided the developer with the financing for the 135,000-square-foot project at 322 Grand Concourse in Mott Haven, the lender told The Real Deal.

Martin Nussbaum, co-founder of Slate Property Group and Scale Lending, said the loan will help deliver housing units in a Bronx market that has maintained strong demand even in the pandemic. The lender also recently issued a $59 million construction loan for a 113-unit multifamily development in East Harlem, just across the Harlem River from Mott Haven.

Kaufman recently received a new building permit for the Mott Haven apartment project, which includes a screening room, golf simulator, pet spa and recreation room, according to the plans filed with the city.

The development is located within a census tract that has been designated as an Opportunity Zone, which allows investors to defer capital gains taxes from previous deals. It was unclear if the developer is using qualified opportunity funds for the development. An effort to reach Kaufman was unsuccessful.

The lender said the development is part of the Affordable New York program, with 30 percent of the units to be set aside for affordable housing. The program — the successor to 421a — provides substantial property tax breaks for new apartment construction.





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