Long Island City’s next megaproject, a residential development near Newton Creek, came out of the gates strong during the first month of 2023 and set the pace for New York City projects looking to borrow big bucks.
In fact, multifamily buildings captured all five of January’s biggest debt deals, which totaled $955 million, slightly behind December’s $1.12 billion.
Here’s a closer look:
Malty brew | Queens | $72M
Wells Fargo and PNC Bank led the origination of the massive construction loans for a 1,386-unit rental complex developed by TF Cornerstone. Located at the corner of Second Street and 54th Avenue near Newtown Creek in Queens, the two-tower structure will reach 38 stories and share a podium on Malt Drive, a street name that nods to the site’s history as a beer distribution warehouse. M&T, Bank of New York, TD Bank, Bank United and City National Bank also contributed to the loans.
Section-8 estates | the Bronx | $74M
Chicago-based Systima Capital Management put up the money to fund the purchase of four affordable housing buildings in Morrisania, High Bridge and Belmont. A joint venture between Gilbane Development Group, Systima, ELH Management and TerreAlto bought the section-8 buildings — with 477 combined units at 280 East 161st Street, 1105 Jerome Avenue, 101 and 103 West 165th Street and 2362 Southern Boulevard — for $107 million. The purchase includes a development parcel near Yankee Stadium with 525,000 feet of development potential. The loan is secured by an additional property: 1140 Woodycrest Avenue.
Bed-Stuy beds | Brooklyn | $62M
Connecticut-based Post Road Group lent Travis Stabler’s Rivington Company the funding to build multifamily at 725 Myrtle Avenue, on the corner of Sanford Street in Bedford-Stuyvesant, Brooklyn. An assemblage with 120,000 buildable square feet with room for over 100 residential units, according to marketing material. The property was acquired in October 2021 for $17 million. The lot is zoned with a mandatory inclusionary housing requirement with income level restrictions of 40 and 60 percent of area median income.
Dollars and Dime | Queens | $47M
Dime Community Bank got behind BLDG Management’s purchase of the ground lease at the Urban, a 103-unit rental building at 144-74 Northern Boulevard in Flushing, Queens. Founded by Lloyd Goldman, a nephew of the late Sol Goldman, BLDG bought the ground lease last month from Onex Real Estate Partners for $86 million. Wells Fargo was the prior lender on the project, completed in 2020. The Hogsett family owns the fee position.
Wave hello | Brooklyn | $47M
HIG Capital replaced SL Green’s loan at 540 Waverly Avenue, a 135-unit rental building in Clinton Hill, Brooklyn included $8.9 million in gap funds. The Daten Group developed the project, which was completed last year. A two-bed, two-bath apartment there recently rented for $5,500, according to StreetEasy.
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