Suburban NY Development Gets $148M in Financing
A zoning overhaul helped pave the way for the transit-oriented project.
Co-developers Hyperion Group and AIP have secured $147.5 million in debt and equity financing for the construction of 2 South Main, a 12-story, 322-unit, 355,000-square-foot, mixed-use building in downtown Port Chester, N.Y. Construction is expected to start in the fourth quarter.
The capitalization combines an equity investment from Related Fund Management with construction financing provided by Arbor Realty Trust’s Arbor Private Construction lending program. The amounts were not disclosed.
Walker & Dunlop Capital Markets served as an advisor to the joint venture—which also includes Winter Properties—and arranged the debt and equity capitalization. Located within an Opportunity Zone in a New York City suburb, the project also benefits from a 20-year payment-in-lieu of taxes agreement through the Port Chester Industrial Development Agency.
Mo Beler and Jonathan Paine, senior managing directors of Capital Markets and co-heads of Equity & Structured Finance at Walker & Dunlop, led the team that arranged the equity investment. Other team members included Managing Director Cory Elbaum, Director Jackson Irwin and Analyst Dawson Jessee.
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Walker & Dunlop Senior Managing Directors Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly and Sean Reimer, along with Managing Director Jordan Casella, Director Christopher de Raet and Associate Stanley Cayre secured the construction financing.
Main Street location, close to transit
The development, which will be partially affordable, will have a mix of studio, one- and two-bedroom floorplans. The property will include 330 parking spaces and 5,000 square feet of retail space. Amenities are expected to include a fitness center, resident lounges and outdoor recreational areas.
The project is part of targeted revitalization plans by the Village of Port Chester and New York State that prioritized the downtown and waterfront areas for redevelopment. A form-based zoning code adopted by the village in 2020 established the framework for transit-oriented development and a more connected, walkable community along the Byram River.
Situated in Liberty Square along Main Street and the Byram River, residents of 2 South Main will be able to walk to shops, restaurants, a marina, public waterfront park and entertainment venues including The Capitol Theatre and AMC Port Chester 14, a multiplex theater with IMAX. Recreational areas, including Rye Beach, trails at the Edith G. Read Natural Park and numerous golf courses are also nearby.
The transit-oriented development is adjacent to the Port Chester Metro-North Station, with direct access to Grand Central Terminal in Manhattan. Residents will also be close to I-95 and I-287, which both provide access across Westchester County and to major employment centers in White Plains, N.Y., Stamford, Conn., and the New York City metro area.
LRC Construction is the general contractor. Cetra Ruddy Architecture is lead architect for 2 South Main. GEA Consulting Engineers is providing MEP/FP design services.
