The development of 500 Main St., a 477-unit, Class A mixed-income residential property is slated to begin in downtown New Rochelle, N.Y., following the announcement that $294 million in construction financing has been secured. The 26-story project, including 24,000 square feet of amenity spaces, is slated to be completed in late 2024.
Project partners are BRP Cos., the Urban Investment Group within Goldman Sachs Asset Management, New York State Homes and Community Renewal, Westchester (N.Y.) County, Interfaith Dwellings Corp., Merchants Bank of Indiana, Wells Fargo and Fannie Mae.
A $200 million construction loan was procured through a combination of both taxable and tax-exempt bonds issued by HCR’s Housing Finance Agency, with credit enhancement from an equal amount of proceeds provided by Goldman Sachs and Merchants Bank of Indiana with Wells Fargo serving as the bond underwriter. HCR, Goldman Sachs and Merchants Bank of Indiana also provided a $25.4 million participation construction loan. Goldman Sachs will also be providing $40.7 million in equity and $20.7 million in Low Income Housing Tax Credit (LIHTC) equity.
Westchester County provided $5 million in grant funding and Interfaith Dwellings Corp. provided $2.5 million in low-interest rate debt. Permanent financing will be provided by a forward commitment from Merchants Capital via the Fannie Mae MTEB program.
The project is one of several developments that have received funds from HCR under a plan announced by New York Gov. Kathy Hochul to commit $991 million through bonds and subsidies for the development, preservation and rehabilitation of 3,242 affordable, supportive and sustainable units across New York State. The financing package for the statewide program includes $785 million in taxable and tax-exempt bonds issued by HCR, along with $206 million in subsidy generated through a mix of programs. Roughly $379 million in additional funding will come through private lenders, bringing the total investment in affordable housing to nearly $1.4 billion.
Units at 500 Main St. will range in size from studios to two-bedroom residences. Of the 477 units, 119 will be affordable, with 20 apartments available to residents earning up to 50 percent of the area median income and 99 units available to residents earning up to 60 percent AMI. Amenities will include a fitness center, lounge, pool, roof deck and on-site parking. Located on a major thoroughfare in the Westchester County city, residents will be close to public transportation, services, retail, restaurants and employment opportunities.
Meredith Marshall, co-founder & managing partner of BRP Cos., said in a prepared statement downtown New Rochelle is experiencing a major revitalization and the firm was proud to play a part, along with its partners, in one of the most significant economic development initiatives in the city’s history.
Calling 500 Main St. a catalytic public-private partnership, Yarojin Robinson, managing director, Goldman Sachs Asset Management Urban Investment Group, said in prepared remarks the project will provide a much-needed increase in high-quality affordable housing and help to reactivate a historic corner of downtown New Rochelle. The building will also have ground-floor retail and community space.