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L+M lands $53M construction loan for East Village rental

Developer planning a 12-story building at 79 Avenue D

From left: 79-89 Avenue D and L&M's Ron Moelis
From left: 79-89 Avenue D and L&M's Ron Moelis

UPDATED, 6:31 p.m., Oct. 31: L+M Development Partners scored a $52.8 million loan from TD Bank for the construction of its rental project at 79 Avenue D in the East Village.

The loan is backed by the New York State Housing Finance Agency, which issued $52.8 million in tax-exempt and taxable housing revenue bonds purchased by TD Bank, according to a representative from L+M.

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The developer is planning a 12-story building that will feature 22 units of permanently affordable housing and 88 market-rate units spread across 88,000 square feet. The 80/20 project also includes nearly 13,300 square feet of retail space across the ground and basement floors. Rite Aid — which was previously housed at the site — has pre-leased the space. The developer paid $12.5 million to the Fried family for the site in 2014.

L+M Development, headed by Ron Moelis, actively develops both affordable and market-rate housing. The company, along with Hornig Capital Partners, has teamed up with SBH Health System to develop 314 units of supportive housing in the Bronx. L+M is also planning a 59-story mixed-use development at 23 Park Row in the Financial District.

Correction: A previous version of this story incorrectly implied there are buildings at the site. They have been demolished. It also stated there is 7,800 square feet of commercial space planned for the building. There is nearly 13,300 square feet of retail space across the ground and basement levels.

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