2 NYC Projects Land $181M in Financing

Merchants Capital secured financing for two affordable housing developments in the East Harlem and Flatbush neighborhoods that together total 659 units.
Rendering of Caton Flats. Image courtesy of Merchants Capital

Two affordable housing developments in New York City have received financing through Freddie Mac that totaled more than $180.6 million, according to Merchants Capital, which secured the financing on behalf of the developers behind the projects.

In East Harlem, The Richman Group Development Corp.’s 404-unit mixed-use project MEC 125th Street received $120 million in financing through a 35-year Freddie Mac Forward Commitment loan secured by Merchants Capital. Nearly two-thirds of the 19-story property’s units will be designated affordable, while the remaining 27 percent will be market rate. MEC 125th Street is situated one block from the 125th Street subway station and two blocks from the Harlem 125th Street Metro North station.

In Brooklyn, BRP Cos.’s Caton Flats development received $60 million in financing through the Freddie Mac Non-LIHTC Forward Commitment. The 14-story mixed-use development, a revitalization of the Flatbush Caton Market that received approval from the New York City Council in 2017, will bring 255 mixed-income units to the Flatbush neighborhood, as well as 13,000 square feet of retail, 75 below grade parking spaces and 12,500 square feet of community space. Partnering with BRP in the development is Urbane Development and the Caribbean American Chamber of Commerce and Industry.

“In addition to providing the neighborhood with much-needed housing, Caton Flats will also serve as a center of commerce, entrepreneurship and culture for Flatbush and the surrounding community,” said Andy Cohen, director of development for BRP Cos., in prepared remarks.

Brooklyn’s stock of multifamily units reached a new cycle peak in 2018, with 4,651 units, according to a Yardi Matrix report. At the same time, Manhattan added more than 3,700 multifamily units.