Dealmaker: Merchants Capital Secures $61M for Queens, N.Y., Affordable Housing Development

(Image courtesy of Merchants Capital)

Merchants Capital, Carmel, Ind., announced $60.5 million in total financing for the acquisition and preservation by Tredway of a 602-unit affordable housing community in the Queens, N.Y., neighborhood of Far Rockaway.

Merchants Capital secured the balance sheet acquisition loan provided by Merchants Bank to stabilize and extend affordability for the 602 units, providing capital to complete critical repairs.

The rehabilitation will repair deterioration due to beachfront exposure. It will include critical structural repairs, replacement of the parking deck, extensive waterproofing, window weatherization and other improvements per local law. There are also energy-efficient improvements planned.

The renovation work began in May and is expected to be completed next year.

The property–Ocean Park Apartments–features two 26-story towers with one-, two-, and three-bedroom apartments and four commercial spaces.

All of the units are rent stabilized, according to Tredway’s new regulatory agreement with the Department of Housing Preservation & Development, with affordability of 423 units being extended at 60% area median income and 179 units at 80% AMI.     

“The structural integrity of Ocean Park Apartments and affordability of more than 600 multifamily units are being supported and well maintained due to the collaboration and commitment of Tredway and partners involved in this deal,” said Merchants Capital SVP of Originations Michael Milazzo. “We are proud to contribute to this community-enhancing effort.”