Brooklyn Affordable Housing Project Secures $ 69 Million Loan
SCALE Lending has funded another affordable housing project in the New York City subway, this time in the Prospect Lefferts Gardens neighborhood in Brooklyn. The lender, which is a subsidiary of Slate Property Group, provided a loan of $ 68.5 million to K2 Real Estate Partners for the construction of 210 Clarkson Ave. Meridian Capital Group arranged the financing.
Construction on the eight-story mixed-use community has already started, a Slate spokesperson said Multi-dwelling news. The existing buildings at the site are being demolished and the overall construction process is expected to take around 24 months, the spokesperson also said. MHN. K2 also engaged New York Developers & Management as a general contractor for 210 Clarkson Ave.
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When complete, the community will total 165,000 gross square feet and 165 studio, one and two bed units. Slate said MHN that 50 of the units will be designated as affordable and reserved for those who make 130 percent MAI. Community amenities will include a workstation, fitness center, yoga studio, outdoor patio, rooftop patio, and parking garage. The retail space on the ground floor of 210 Clarkson Ave. should also be rented to a grocery store tenant.
Martin Nussbaum, co-founder and director of Slate, said in prepared remarks that SCALE Lending was able to close the financing quickly so that the borrower could immediately begin construction and maintain the project’s eligibility for the Affordable New York program. He added that the eligibility of 210 Clarkson Ave. the affordable housing program was scheduled to expire in June 2022.
Responding to the New York Recovery
With construction financing provided to 210 Clarkson Ave., SCALE Lending has provided more than $ 1.25 billion in the past 18 months. Several of the loans went to residential projects in the New York metro area, as Nussbaum said there was strong industry confidence in the city’s recovery.
Earlier this month, SCALE Lending also provided $ 96 million in financing for the construction and land acquisition of two developments totaling 811 units in Jersey City, NJ. In June, the lender also made a $ 63 million construction loan for a 151-unit community in the Bronx. which will have 30 percent of its units designated as affordable.