Smith & Henzy Lands $38M for Hartford-Area Project
Northmarq secured the construction loan and preferred equity.
The Pike. Image courtesy of Pembrook Capital Management LLC
Smith & Henzy has received $37.5 million in financing for the development of The Pike, a 151-unit project in Newington, Conn., near Hartford. The capital stack, which was secured by Northmarq and represents 85 percent loan-to-cost, incorporates a $25 million construction loan from a bank and $12.5 million in preferred equity from Pembrook Capital Management.
At least 10 percent of units will be legally designated as affordable, targeting individuals that earn 80 percent or less of the area median income. What’s more, Pembrook puts the community under the “naturally occurring affordable housing“—or NOAH—banner.
As reported by Local478, the property will benefit from 43 percent tax abatement over a period of 10 years. The community is slated to incorporate two four-story buildings encompassing one- and two-bedroom apartments which will feature nine-foot ceilings, large windows and in-unit washers and dryers. Common-area amenities are expected to include a fitness center and lounge areas.
Located at 277 Pane Road, the 5-acre site is close to Highway 5 and 11 miles south of downtown Hartford. In the parcel’s immediate vicinity there are some retail and dining options.
Vice Presidents Tyler Woodard and Chris McCook, along with Senior Vice President Brad Burns and Managing Director Brandon Harrington, led the Northmarq team that arranged the financing. Stuart Boesky, CEO of Pembrook, mentioned in prepared remarks that Newington has a low vacancy rate and demand for moderate income housing options greatly outpaces supply.
