Shorewood, Bridge Investment Secure $88M Construction Loan
- Jun 24, 2020
Shorewood Real Estate Group and Bridge Investment Group have secured an $88 million construction loan for its first Opportunity Zone project. The financing was provided by East West Bank and a syndicate of lenders for 1 Archer Ave. apartments in Jamaica, Queens.
Located at 160-05 Archer Ave., the 320,000-square-foot mixed-use development will feature 315 units, a 24,000-square-foot ground floor retail space and below grade parking. David Simon, Shorewood’s vice president of acquisitions and development, told Multi-Housing News that 30 percent of the units will be affordable and reserved for those who make 130 percent of the area’s median income.
S. Lawrence Davis, Shorewood’s CEO, added in prepared remarks that the affordability aspect of 1 Archer Ave. was crucial to the project and that the new project would enhance the surrounding neighborhood.
Shorewood initially purchased the site for $20 million in August 2018 and broke ground on the project in September 2019. Simon told MHN that the project is aiming for a September 2021 completion date.
OPPORTUNITY ZONES IN NYC
While 1 Archer Ave. is Shorewood’s first development with opportunity zone capital, the company is already looking at other opportunities in the surrounding New York City area.
Shorewood created its opportunity zone fund shortly after the Tax Cuts and Jobs Act in 2017 formed the Opportunity Zones program. With tax incentives to build in distressed areas, many developers have signed onto the program, but the Shorewood fund is specifically focusing on submarkets in the New York metro area, Simon told MHN. While the opportunity zone program is expected to hit a speed bump due to COVID-19, Simon also said that Shorewood already has another opportunity zone deal in Newark, N.J.