Beitel Group Lands $135M Loan for 2 Bronx Developments
SCALE Lending provided construction financing for the 14-story buildings.
The Beitel Group has secured a $135 million construction loan from SCALE Lending, the debt financing arm of Slate Property Group, for the development of two adjacent multifamily buildings totaling 405 units in the Mott Haven neighborhood of Bronx, N.Y.
Landstone Capital arranged the 24-month whole-term loan that includes two six-month extension options.
The Beitel Group acquired the sites in April 2022 and proceeded to demolish the existing buildings and complete the excavation work.
Located at 261 Grand Concourse and 315 Grand Concourse, each building will be 14 stories. Together, they will have a total of 348,000 square feet of space. The community will feature studios, one- and two-bedroom residences. There will be 136 parking spaces and 5,100 square feet of shared recreation space. Amenities for both buildings will be located on the first and second floors of 261 Grand Concourse.
The building sites are located across from the 138th Street Grand Concourse subway station, which services the 4 and 5 trains and offers quick access to Grand Central Station in Manhattan. The properties are a 10-minute walk to Bruckner Boulevard with restaurants and retail as well as access to the newly developed Waterfront and Bankside Park.
Both projects have been vested into the 421a tax abatement program that encouraged developers to build affordable housing before it expired in 2022. Completion is slated for November 2025. Prestige Construction NY is the general contractor and the designer is S. Weider Architect PC.
Previous SCALE loans
In April, SCALE Lending provided a $150 million construction loan to the Beitel Group for a 450-unit multifamily project at 120 E. 144th St., also in the Mott Haven neighborhood. Completion for that project is expected by mid-2025. The 289,000-square-foot, 13-story building will also have studios, one- and two-bedroom floorplans.
Including the new loan for Beitel Group’s Grand Concourse projects, SCALE has announced $1 billion in closings for the past year. Other recent financings include a $75 million bridge loan to Capodagli Property Co. to retire existing debt on a newly built 294-unit multifamily development in Little Ferry, N.J. The loan, originated in August, will also help the developer complete lease-up and stabilization.
In March, SCALE closed a $140 million loan for developer Clipper Equity to construct a 354-unit multifamily community in Brooklyn. The project is expected to be completed in the third quarter of 2025.
Earlier in the year, the Namdar Group secured two loans totaling $243 million from SCALE, including a $160 million construction loan for the development of a 579-unit multifamily property in Jersey City, N.J. The second was an $83 million bridge loan for a recently completed 27-story tower, also in Jersey City.
