Joseph Stern’s SB Development and Hazelton Capital Group are the latest developers to score a condo inventory loan to get their project over the finish line.
The developers secured a $62 million completion to condo inventory loan from Northwind Group for Nova, an 86-unit Long Island City luxury development at 41-05 29th Street. The financing will be used to finish the nearly completed project and to sell out the remaining units.
Northwind’s Ran Eliasaf said the building is over 90 percent complete and should obtain a temporary certificate of occupancy in a couple of months. About half of the units are under contract.
The 24-story building is known for its wedge shape design, which is a modern lookalike of Manhattan’s Flatiron building.
Northwind has been an active lender of condo inventory loans, which act as a bridge loan until condo owners are able to sell out their remaining units. This summer, the lender provided a $45 million condo inventory loan to Glacier Equities and Meadow Partners for a 226-unit Upper West Side condo building at 175 West 95th Street.
Luxury apartment and condo developers have targeted Long Island City for new development in recent years, but some of those developers have struggled to sell units. The Skyline, the neighborhood’s tallest condo building, has only sold 60 percent of its units as of September, according to data compiled by Patrick Smith, an independent real estate consultant and Long Island City-based agent affiliated with the Corcoran Group.
Higher mortgage rates could put further pressure on condo sales. But inventory still remains limited across New York. In Manhattan, new condo inventory fell below 6,000 units this summer for the first time since 2018, according to Brown Harris Stevens Development Marketing data shared with The Real Deal.