Lower East Side affordable complex lands $162M construction loan

Gotham Organization’s complex will have rentals, cultural centers

Gotham Organization CEO David Picket and a rendering of the Broome Street Development complex (Gotham; Community at Broome)
Gotham Organization CEO David Picket and a rendering of the Broome Street Development complex (Gotham; Community at Broome)

UPDATED, Dec. 28 2020, 3:20 p.m.: A mixed-use building in the works on the Lower East Side landed a $162.4 million construction loan from Wells Fargo and US Bank.

The loan is for 55 Suffolk Street, which is part of the two-building Broome Street Development complex (which also includes 64 Norfolk Street), spearheaded by a joint venture between the Gotham Organization and Goldman Sachs Urban Investment Group, Commercial Observer reported.

In total, 400,000-square-foot project — which was one of the biggest new real estate projects filed this year — will feature about 500 rental apartments, including 209 affordable units and 115 units set aside for seniors. The Chinese American Planning Council, a nonprofit providing educational, social, and community services for Asian Americans, will also have its headquarters within the complex, occupying 40,000 square feet at 55 Suffolk Street.

Sign Up for the undefined Newsletter

Read more

60 Norfolk Street and 1607 Surf Avenue (Credit: Google Maps)
New York
The top 10 biggest real estate projects coming to NYC
Essex Crossing
New York
Inside the brand new Essex Crossing complex
From left: 500 E. 30th St., 312 W. 43rd St., 60 Norfolk St., Gotham's David Picket, Department of Buildings Commissioner Melanie La Rocca and Taconic's Charles Bendit (Credit: Google Maps)
New York
Project filings slowed in winter, plunged in March

The project has been in the works for several years, following a fire that gutted the Beth Hamedrash Hagadol Synagogue, which previously stood on the site. A new synagogue with a cultural heritage center will occupy part of the Norfolk Street building.

In addition to the construction debt, the Suffolk Street building, which is the project’s first phase, secured a $70 million equity commitment. The second phase of the project at 64 Norfolk Street has secured $3 million in the federal Low Income Housing Tax Credit on the second phase of development, sources told Commercial Observer. [CO] — Akiko Matsuda

CORRECTION: An earlier version of this story stated the $162 million loan was for the entire complex. It is just for the building at 55 Suffolk Street.