BRP Companies is ready to break ground for a mixed-use development in Westchester after scoring a massive construction loan from a variety of partners.
The developer nabbed $294 million in construction financing for its project at 500 Main Street in New Rochelle, where the company said it aims to start construction immediately.
BRP’s mixed-use building will deliver 477 housing units to New Rochelle, approximately 25 percent of which will be set aside for affordable housing. There will also be a variety of amenities, including a fitness center, lounge, pool, roof deck and on-site parking.
“Downtown New Rochelle is experiencing a major revitalization, and we’re proud to play a part in one of the most significant economic development initiatives in the city’s history,” said BRP co-founder Meredith Marshall.
New Rochelle announced the development at 500 Main Street in 2018. The project was one of three announced at the time, although it featured about half of the current apartment deliveries at the time.
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Financing for the project was led by a $200 million loan procured through bonds issued by New York State Homes and Community Renewal, which come with a credit enhancement via an equal amount of proceeds provided by Goldman Sachs and Merchants Bank of Indiana.
HCR, Goldman Sachs and Merchants Bank of Indiana also provided a $25.4 million construction loan, while Goldman is providing $40.7 million in equity and $20.7 million in LIHTC equity. Additional funding sources include grant funding from the county and low-interest rate debt from Interfaith Dwellings Corporation. Merchants Capital is committed to providing permanent financing through the Fannie Mae MTEB program.
Construction is set to be completed towards the end of 2024.
BRP has another project in the pipeline in New Rochelle. The market-rate project at 10 Commerce Drive is under construction, set to bring 172 housing units to the area. The 211,000-square-foot project has a total development cost of $74 million.
Elsewhere, BRP recently landed $290 million in financing from Goldman Sachs Asset Management for a mixed-use development in a Queens Opportunity Zone. Archer Towers, a 24-story building in Jamaica, will include 605 mixed-income residences, 20,000 square feet of amenities and 14,000 square feet of retail space.