JPMorgan and NYC HDC Support $162.9M Williamsburg Construction Financing
- ARCFE U.S.
- 16 hours ago
- 3 min read
Slate Property Group and RiseBoro Community Partnership have closed on acquisition and construction financing for two affordable and supportive housing developments in Williamsburg, Brooklyn.
According to Commercial Observer, the development team secured a $162.9 million loan to build the projects at 178 Montrose Avenue and 73 Meserole Street. JPMorgan Chase originated the financing, which was arranged by the New York City Housing Development Corporation.
The broader financing package combines several public and private sources. It includes tax-exempt bond financing and loan support from HDC, additional support from the New York City Department of Housing Preservation and Development, tax-credit equity and operating support for resident services. JPMorgan Chase is also providing the construction credit enhancement and tax-credit equity investment.
The two developments will provide a combined 312 apartments, including 163 homes at 178 Montrose Avenue and 149 at 73 Meserole Street. Approximately 60 percent will be reserved for formerly homeless households, while the remaining apartments will be offered at rents affordable to low-income residents. Units will range from studios to three-bedroom homes.
The buildings will also include indoor and outdoor recreation areas, fitness facilities, laundry rooms and space for on-site social and administrative services. Upon completion, RiseBoro is expected to own and operate both properties, providing long-term management and resident support.
Both buildings are planned as all-electric developments with heat-pump water heaters and cooling systems. They will follow the Enterprise Green Communities Criteria, a green building framework designed specifically for affordable housing.
The development sites were acquired from Two Trees Management for a reported $2, while Two Trees retained the associated air rights. The nominal purchase price should therefore not be viewed as a typical market land value; the retained development rights formed an important part of the overall transaction structure.
Why the Williamsburg Construction Financing Matters for New York Real Estate
Closing construction financing is an important step because it identifies the capital sources expected to support actual development, rather than leaving the projects at the planning stage.
For clients following New York real estate, the practical lesson is that large projects often depend on several parties performing different roles. The developer, bank, city housing agencies, tax-credit investors and long-term operator must work within one coordinated plan.
EB-5 Investor Insight
1. Confirm which funding sources have actually closed.A project may list several financing sources, but investors should understand which commitments are finalized, what each source will fund and how the pieces fit together.
2. Review the full site and operating structure.A low headline land price does not necessarily mean a low-cost acquisition when air rights or other development interests are retained. Investors should also understand who will own, manage and operate the completed property.
Investors can review the basic structure of regional center investments through ARCFE’s EB-5 Immigrant Investor Program.
Related ARCFE Resources
Review the immigration, travel, tax and residency considerations families should understand after receiving a conditional green card.
Learn how senior debt, mezzanine financing and equity differ in repayment priority and risk exposure.
Understand why positive market trends should still be combined with project-level review of financing, collateral, job creation and repayment planning.
Interested in New York Real Estate-Backed EB-5 Opportunities?
Discover Skyline Tower II, ARCFE’s current EB-5 project in Long Island City, Queens.
Complete the form and our team will follow up to discuss your EB-5 planning and current project options.
Official Sources
Primary Source: Commercial Observer — Slate and RiseBoro Land $163M Loan for Two Williamsburg Housing Projects
Project and Financing Details: New York Real Estate Journal — Slate Property Group and RiseBoro Close on Acquisition and Construction Financing
Development Update: New York YIMBY — Construction Financing Secured for 178 Montrose Avenue and 73 Meserole Street
Public Financing Information: NYC Housing Development Corporation
Disclaimer: Articles published under the "News" category are curated from third-party media sources for informational purposes only. ARCFE does not claim ownership of the original content, nor does it guarantee the accuracy, completeness, or timeliness of the information presented. The views and opinions expressed in these articles are those of the original authors and do not necessarily reflect the position of ARCFE. Nothing contained herein constitutes investment, legal, or tax advice. Readers are encouraged to consult with qualified professionals before making any investment decisions.
