MRC Lends $44M for Manhattan Student Housing Development
- Jun 28, 2016
New York— Madison Realty Capital provided a $44 million first mortgage loan to Singer Financial Corporation to recapitalize 350 East 10th Street, a student housing development in the East Village neighborhood of Manhattan.
The project will address the growing demand for student housing, which continues to be supply constrained in the area.
“The deal afforded us the opportunity to provide financing at a great loan basis in a liquid market with limited student housing product,” Josh Zegen, MRC’s managing principal, told MHN. “It offers a great location in an area with a limited supply of student housing with great demand. There is great need given the amount of schools in NYC and the fact that student housing is so expensive for rentals/newly renovated apartments.”
Located on a mid-block lot that extends from East 9th Street to East 10th Street between Avenue B and Avenue C, the 110,000-square-foot landmarked property was originally constructed in 1906 and operated as elementary school PS 64 until its closure in the mid 1970s.
“This new development will provide a brand new student living facility with contemporary amenities, right in the heart of the East Village, one of the most artistic and diverse communities in the city,” Zegen said.
The five-story building will offer amenities such as a health center and fitness room, as well as collaborative outdoor spaces. The property will also offer a variety of suite layouts that will address the growing demand in the marketplace.
The borrower first acquired the vacant asset in 1999 and has since been pursuing the entitlement and redevelopment of the property.
According to Zegen, the financing provided by MRC will retire the existing indebtedness and provide capital for pre-development and upon completion, will provide a first class housing option in the East Village.
The East Village has been known for decades as the center of the counterculture community in New York City. The area offers residents an abundance of restaurants, shops and nightlife choices as well as ample transportation options.