The Rockrose Development Corp. has finally closed the $270 million construction loan it applied for the development of its huge 80/20 apartment complex at 43-25 Hunter Street in Long Island city, as confirmed by the firm’s President, Justin Elghanayan as reported by Commercial Observer.
The development has been funded by Wells Fargo, TD Bank, and Capital One, with Wells Fargo serving as the lead lender in the transaction, funding about half of the $543 million project.
The loan was made possible through the initial sale of the $85 million tax-exempt bonds and $185 million in taxable bonds which were issued by the New York State Housing Finance Agency.
This proposed 974-unit multi-family development in LIC’s Court Square district will house a 14-story low-rise rental tower wand a 50-story high-rise rental tower.
With the state’s 421a tax incentive program, the 195 apartments will be set aside as affordable units for a 30-year period for its lessors who earns up to 60% of the median income in the area. The rest of the apartments will be rent-stabilized market-rate units.
These residential towers under construction are the largest 80/20 development in New York to date, according to the developer.
“Historically, the 80/20 program only really worked in Manhattan, where the rents have been high enough to carry the affordable units,” as Mr. Elghanayan said. “But now the rents have risen in the outer boroughs to the point where an 80/20 starts to make sense.”
The apartment complex is set to be complete by 2017. Presently, construction is up to the 10th floor already on the low-rise tower. Amenities in this development will include a health club, yoga deck and room, and three other roof decks, pet-washing station, and multiple lounges.
For more than two decades now, Rockrose has been investing in the Court Square district of LIC.