Affordable Staten Island Assets Land $12M Loan
- Jul 13, 2020
Pembrook Capital Management has originated a $12.4 million acquisition and development loan for two rent-stabilized communities encompassing 112 units in Staten Island. Meridian Capital Group arranged the financing for the buyer, Iris Holdings Group. The new owner will convert the assets into long-term rent-controlled properties using New York City’s Article XI Tax Incentive Program.
The regulatory agreement has a duration of 40 years and imposes an affordability threshold for residents earning between 55 and 100 percent of the area median income. As part of the deal, local authorities will provide tax abatements for the borrower.
Located on 1.4 acres at 100 Belmont Place and 101 Daniel Low Terrace, the two seven-story buildings were completed in 1966. The buyer will execute a $2.3 million renovation plan, including both interior and exterior upgrades. Demand for affordable units in New York is far greater than the current supply and will continue to eclipse it for many years to come, according to Pembrook CEO Stuart Boesky.
The Meridian brokerage team assisting the borrower included Senior Vice President Isaac Filler and Associate Yossi Koschitzki.
Last month, a partnership between MDG Design + Construction, Smith & Henzy Advisory Group and The New York Foundling received $72.1 million in construction financing for a 160-unit affordable housing development in Brooklyn.
*The article was updated on 7/15/2020 to add information about the owner and the brokerage company.