SCALE Lending has provided funding to another affordable housing project in the New York City metro, this time in Brooklyn’s Prospect Lefferts Gardens neighborhood. The lender, who is an affiliate of Slate Property Group, provided a $68.5 million loan to K2 Real Estate Partners for the construction of 210 Clarkson Ave. Meridian Capital Group arranged the financing.
Construction for the eight-story mixed-use community has already started, a spokesperson for Slate told Multi-Housing News. The site’s existing buildings are being demolished and the overall construction process is expected to last approximately 24 months, the spokesperson also told MHN. K2 also tapped New York Developers & Management as the general contractor for 210 Clarkson Ave.
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Once completed, the community will total 165,000 gross square feet and 165 units in studio, one- and two-bed floorplans. Slate told MHN that 50 of the units will be designated as affordable and reserved for those making 130 percent AMI. The community’s amenities will include a work station, fitness center, yoga studio, outdoor deck, rooftop terrace and parking garage. The ground-floor retail space of 210 Clarkson Ave. is also expected to be leased to a grocery tenant.
Martin Nussbaum, co-founder and principal of Slate, said in prepared remarks that SCALE Lending was able to close on the financing quickly in order for the borrower to immediately start construction and maintain the project’s eligibility for the Affordable New York program. He added that 210 Clarkson Ave.’s eligibility for the affordable housing program was set to expire in June 2022.
Responding to New York’s Recovery
With the construction financing provided to 210 Clarkson Ave., SCALE Lending has provided more than $1.25 billion in the last 18 months. Several of the loans were provided to residential projects in the New York City 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, N.J. In June, the lender also provided a $63 million construction loan for a 151-unit community in The Bronx that will have 30 percent of its units designated as affordable.