Chetrit lands $265M in financing for former Queens hospital site

Developer building five-tower residential project in Jamaica closes on two loans

A rendering of Parkhill City with Joe Chetrit (Parkhill City, Getty)
A rendering of Parkhill City with Joe Chetrit (Parkhill City, Getty)

Joe Chetrit’s real estate firm had no trouble finding financing for the massive apartment project it plans for the former site of the Mary Immaculate Hospital in Jamaica, Queens.

Chetrit Group scored a $225 million CMBS loan from Starwood Capital and BMO to refinance its 481-unit multifamily complex known as Parkhill City, according to a source familiar with the deal. The package will replace a $200 million refinancing loan provided by Square Mile Capital in 2019.

Prior to that refinancing, the company secured $127.5 million in in construction financing for the project in 2016 from Bank OZK and Arbor Commercial Mortgage.

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The site, just north of Rufus King Park, offers more than 415,000 buildable square feet. Chetrit acquired it in 2009 for about $4.8 million.

In addition to the $225 million CMBS loan, Chetrit secured a $40 million construction loan from G4 Capital to build a 107-unit apartment building at 88 153rd Street, according to the source. The building would be the fifth apartment at the former hospital site.

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Jason Behfarin, co-managing partner of New York-based G4 Capital, said all units in the tower will be income-restricted.

“We are thrilled to provide financing to a repeat sponsor to deliver much-needed affordable housing to New York City,” said Behfarin, who worked on the deal with Robyn Sorid, co-managing partner of G4 Capital.

Both deals were brokered by Henry Bodek of Galaxy Capital Group.

Chetrit is among a growing number of developers targeting Jamaica, Queens. Last year, BRP Companies filed plans for a 12-story mixed-use building at 90-02 168th Street.

Chetrit has been busy of late. In April, the firm sold a nearly 5,500-unit multifamily portfolio in Florida, Indiana, Kentucky, Ohio and Pennsylvania for $390 million.

Chetrit, Starwood and BMO did not return requests for comment.