Cantor Fitzgerald, Silverstein Secure $165M Construction Loan
Situated in the Astoria neighborhood of Queens, N.Y., the project is in an Opportunity Zone.
44-01 Northern Boulevard. Image courtesy of Cantor Fitzgerald L.P.
Cantor Silverstein Opportunity Zone Trust, a joint real estate development and investment venture between Cantor Fitzgerald and Silverstein Properties, has closed a $165 million loan.
The debt, provided by Banco Inbursa, will back further construction at 40-01 Northern Boulevard, an 11-story mixed-income apartment building in the Astoria neighborhood of Queens, N.Y.
Construction of the 354-unit multifamily community in 2022, with the project slated to open in 2024.
The project’s long planning
Development of 44-01 Northern Blvd. began in 2019, following the project’s approval by Queens Community Board 1. The board’s approval was contingent on 88 to 100 units being affordable, according to QNS. The LIC Post reported that the 63,000-square-foot plot where the project is being constructed underwent rezoning to allow for an additional 25,000 square feet of retail space. Additionally, the project was part of New York’s 421-a tax abatement program, something the investors and developers took advantage of.
Jeffrey Deitrich, Senior Vice President of Equity Fund Management at Silverstein Properties explained the utility of development’s use of private capital, telling Multi-Housing News, “Real estate taxes in NY are a significant operating expense, and this program is a testament to how creative policy can leverage private capital to deliver more affordable housing for New Yorkers.”
Silverstein acquired what was then a vacant lot in 2020. The site is located two blocks east of several lots where the company plans to build a portion of a 2,700 mixed-use, master-planned community alongside Kaufman Astoria Studios and BedRock Real Estate.
Hill West Architects is designing the project, which will include a mix of one- and two-bedroom apartments featuring masonry and blackened metal material compositions. A quarter of the units are designated as affordable housing, with the rest having market-rate rents. Tenants will have access to green space in both the gardens and upper terraces, in addition to 20,000 square feet of amenities on the 2nd and 10th floors that will include a fitness center, lounge, library, coworking area and chef’s kitchen. At full build-out, the development will include the zoned 25,000 square feet of retail space, as well as 200 private parking spaces.
Adjacent to State Route 25A, one of the borough’s most trafficked roads, as well as the E, F M and R lines of the New York City subway, the community will offer quick access to the surrounding area. Most of metro New York will be within an hour’s commute of the property, which is located three miles from Midtown Manhattan. The neighborhood hosts a diverse array of retail, dining, entertainment and cultural attractions.
Opportunity-zoned investment
The joint venture between Cantor Fitzgerald and Silverstein, which was formed in 2019, focuses on development in Qualified Opportunity Zones. At present, the endeavor’s dual-sector portfolio contains eight projects in Las Vegas, Phoenix, Seattle and Tampa, Fla., as well as Brooklyn, N.Y. The partnership is also developing a 250,000-square-foot life science building in Philadelphia. At present, the portfolio totals 2,769 multifamily units and $2 billion in construction costs.
In September of 2022, the fund acquired $176 million in construction financing for Astra Tower, an ongoing 40-story, 377-unit apartment development in Salt Lake City. The project is expected for completion in 2024.
