KS Group JV Lands $300M for Queens Project
Phase 1 will include more than 700 apartments.
A joint venture between KS Group and Alma Realty has obtained a $300 million loan for the development of the first phase of Astoria Cove in Astoria, N.Y., a Queens neighborhood. Upon completion, Phase One will comprise 731 residential units.
S3 Capital originated the note, with Galaxy Capital Partner Henry Bodek brokering the deal on behalf of the borrower. The development, which is already underway, was also financed under the 421a affordable housing tax abatement. Partners on the project include general contractor YNH Construction.
Alma Realty purchased the Astoria Cove site and secured city council approvals in 2014. Initial plans mandated that 27 percent of the 1,723 units be allocated for low- and middle-income households. Construction was delayed for nearly 11 years due to differences on the required percentage of affordable housing and the expiration of the 421a tax incentive.
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The community is rising along East River at 8-01, 4-34, & 5-57 26th Ave., some 3 miles from LaGuardia Airport. JFK international Airport is 13 miles southeast, while downtown Jersey City, N.J., is 11 miles away.
Phase One will comprise a 26-story tower and three mid-rise buildings. The property will also feature ground-floor retail space and 318 parking spaces. Common-area amenities are set to include a rooftop swimming pool with deck, fitness center, golf simulator, children’s playroom and business center, as well as indoor and outdoor cinemas.
KS Group’s plans include a $95 million land purchase and a $450 million loan for the development’s 1,000-unit second phase, according to Commercial Observer. The firm expects to take out another $450 million for the third phase, which will comprise 1,100 apartments.
Queens’ multifamily inventory to grow
As of March, Queens’ multifamily development pipeline comprised 31 communities totaling almost 11,300 units under construction, according to Yardi Matrix information. Additionally, there were 93 prospective projects or in different planning stages, which would result in 25,650 apartments upon their completion.
Last month, Affinius Capital invested $135 million in 20 & 30 Halletts Point, two high-rise communities totaling 647 units also in Astoria. The Durst Organization owns the developments that are set to come online in the following months.
At the beginning of last year, Watermark Capital Group landed a $70 million construction loan to complete a 26-story, 184-unit community in Long Island City, N.Y. The partially affordable project is scheduled to come online next spring.
