New residential developments are picking up steam in New Rochelle, N.Y.
Capital One has provided a $131.2 million construction loan to RXR Realty for its mixed-use development. The 42-month interest-only floating-rate loan offers two extension options.
Located at 26. S. Division St., the 28-story property will include 352 market-rate units as studios, one-, two- and three-bedroom apartments. The mixed-use building will also include more than 12,000 square feet of retail space and amenities like a valet parking garage, lounge, coworking space and speakeasy.
Prithvi Mohan, a vice president of Capital One’s commercial real estate team who worked on the deal, said in prepared remarks that New Rochelle would follow in the footsteps of other transit-oriented neighborhoods found in Long Island City, Queens, portions of Brooklyn and Jersey City, N.J.
Mohan told Multi-Housing News that RXR’s New Rochelle project shared many similarities with its Larkin Plaza project in Yonkers, where Capital One also provided a $118.3 million loan.
“New Rochelle as a location was attractive as well, being a relatively short commute from Manhattan,” Mohan told MHN. “And add RXR as the master developer to the mix, being an innovative developer and owner, we really wanted to be involved, especially given their commitment to New Rochelle and experience in similar markets.”
A NEWER NEW ROCHELLE
RXR broke ground on 26 South Division in November and is also currently working on an adjacent property, 28 South Division. Prior to both projects, RXR completed its 360 Huguenot property also in New Rochelle in June 2019.
All three properties are part of RXR’s major redevelopment plan in New Rochelle that began in 2015. The developers, who also serve as the master developer for New Rochelle, worked with the city to plan 12 million square feet of new development for its downtown where RXR has approximately 2.3 million square feet of development rights. The rezoning includes every property type from residential, retail, restaurant, office, hospitality and institutional.