SMA Equities Lands $56M Construction Loan for NYC High-Rise

Located in an affluent Manhattan residential area, the project is set to include 28 affordable housing units, with the remaining 80 apartments targeting market-rate renters.
Rendering of 202 E. 23rd St. Image courtesy of JLL Capital Markets

JLL has secured a $56 million loan for the development of 202 E. 23rd St., a mixed-use, 108-unit multifamily property in Manhattan. Bank Leumi USA provided the financing in a deal negotiated by the brokerage’s Capital Markets team on behalf of borrower SMA Equities.

The 20-story project will occupy two lots at the intersection of Third Avenue and 23rd Street in Gramercy Park. Plans for the 90,000-square-foot building call for ground-floor retail, 80 market-rate apartments and 28 affordable units. The floorplan mix consists of studios as well as one- and two-bedroom options. Amenities are set to include a bike storage room, coworking area, gym, roof deck and a lounge on the 20th floor.

The property is two blocks from the 23rd Street subway station that connects to lines 4 and 6. New York State University, Barchus College and NYU Dentistry College are all within walking distance of the upcoming community.

The community will be built under the Affordable Housing New York 421-a program. Additionally, 202 E. 23rd St. will be a passive house-designed project that will include high-efficiency climate control and superior air quality. 

The average rent in Manhattan contracted by 10.4 percent year-over-year through May, Yardi Matrix data shows, but most major urban markets are on the path to recovery from pandemic-generated instability. New York lenders are counting on positive urban migration trends to boost recovery beyond the initial forecast.