Gotham Org lands more loans for Lower East Side development

$50M in construction and project loans for 60 Norfolk Street

60 Norfolk Street with Gotham Organization Chairman Joel Picket and CEO David Picket (Gotham/Dattner Architects)
60 Norfolk Street with Gotham Organization Chairman Joel Picket and CEO David Picket (Gotham/Dattner Architects)

Gotham Organization has secured $50.4 million in financing for the second phase of its massive Lower East Side development project.

Lender Wells Fargo issued a $22.5 million loan for a 16-story building at 60 Norfolk Street, part of the Broome Street Development project, according to loan documents filed with the city. The city’s Department of Housing Preservation & Development provided a $22.4 million loan, while Barings has committed to replace the construction loan at completion with a $5.45 million loan.

The building is slated to have 115 units of affordable housing for seniors. It has received $12.3 million in Low-Income Housing Tax Credits, according to a source familiar with the project. An additional $18.5 million worth of credits are due to be provided later.

Gotham, Wells Fargo and Barings did not immediately respond to requests for comment.

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The second phase of the development will also include a new worship space and cultural heritage center for Beth Hamedrash Hagodol. The synagogue that once stood on the site, which dated back to the mid-19th century, had fallen into disrepair and was destroyed by a suspicious fire in 2017.

The first phase of the development at 55 Suffolk Street landed a $162.4 million construction loan in December. That building will rise 30 stories and have 378 rental units, 25 percent of which — or 94 units — are set aside as affordable housing, according to the developer. The building will also include the Chinese American Planning Council’s 40,000-square-foot headquarters.

Altogether, the Broome Street Development will have just under 500 rental units, 209 of which will be affordable, along with community facilities and retail space.