Dealmaker: Merchants Capital Secures $25 Million for NYC Housing Development

(Image via Merchants Capital)

Merchants Capital, Carmel, Ind., has secured $25.2 million in financing as part of the recapitalization and rehabilitation of Manhattan’s Westbeth Artists Housing, a 384-unit mixed-use affordable artist housing development.

Westbeth Artists Housing is the oldest and largest affordable artist housing development in the U.S. and is listed on the national, state and city historic registries.

Merchants Capital secured financing via a Freddie Mac Capital Markets Execution straight-to-permanent loan.

The rehabilitation is also supported by $63 million from New York State Homes and Community Renewal’s Multifamily Preservation Program.

The project will include capital improvements to replace roofing, elevators, windows and radiators; restoration of the historic facade; renovation of 32 apartments; and energy efficiency upgrades, including the addition of green roofs.

Affordability will be enhanced via a new regulatory agreement with HCR that will stabilize rents and restrict 383 units. A total of 85 permanent Section 8 subsidized units will be available.

The complex is located in the West Village neighborhood, spanning an entire city block. In addition to housing units, it has 64 commercial spaces, including 46 affordable artist workspaces, rehearsal studios, arts programming and exhibition spaces. It’s home to organizations such as the Martha Graham Dance Co., The Kitchen and The New School Graduate Drama Program.

It was originally built in 1868, and later served as the headquarters for Bell Telephone Laboratories. It was transformed into artist housing in 1970.