A block of New Rochelle is getting a new look, amid a larger transformation of the city’s downtown.
On a nondescript lot next to a humble, two-story brick building home to Green Heaven Cleaners, Allstate Ventures will erect a 14-story, 144-unit mixed-use building, financed by a newly issued $48 million construction loan from Slate Property Group affiliate Scale Lending.
Martin Nussbaum, co-founder and principal of Slate, said the high demand for and low supply of quality residential in New Rochelle was a key driver for the firm’s decision to finance the project, at 64 Centre Avenue.
It’s also another example of one developer turning to another, rather than to a bank, for a project loan.
The business of nonbank real estate lenders has been booming as the economy reopens, with developers needing short-term loans, the Wall Street Journal reported. Scale Lending, which has been active in construction financing in the New York metropolitan market, has lent more than $1 billion in the past 18 months, according to the company.
The 64 Centre building is the first of three to be developed in downtown New Rochelle by Allstate Ventures, owned by Mike Jeremias’ Allstate Developers in Monroe, New York. The complex will be called Westchester Place. Jeremias did not respond to requests for comment.
The plan is part of New Rochelle’s ongoing downtown revitalization, which is expected to add more than 6,000 apartments along with hotels, shops and offices near the Westchester County city’s Metro-North train station. Allstate’s development sites are a short walk from the station.
Allstate’s two other buildings will be adjacent to the first, at 316 Huguenot Street and 8 Westchester Place. All together, the Westchester Place complex will boast 406 apartments, along with more than 11,000 square feet of retail space and 343 garage parking spaces, according to Westchester Business Journal.