NEW ROCHELLE, NY — The project to build a tower above the site of the old Grant’s department store and Liebman’s uniform story had locked down $294 mm in Construction Financing.
500 Main Street is a to-be-developed, Class A, 26-story tower in the heart of Downtown, New Rochelle, NY. The property will consist of studio, one and two-bedroom units above a five-story parking garage. Upon completion, 500 Main will have luxurious amenities including a state-of-the-art fitness center, a resident lounge, a swimming pool and rooftop amenities.
BRP Companies, the Urban Investment Group within Goldman Sachs Asset Management, New York State Homes and Community Renewal, Westchester County, Interfaith Dwellings Corporation, Merchants Bank of Indiana, Wells Fargo, and Fannie Mae today announced the closing of construction financing for a 477-unit, mixed-use development located at 500 Main Street in Downtown, New Rochelle.
Construction is slated to begin on the project in February of 2022.
Upon completion, 500 Main Street will deliver 477 residential units to the Downtown New Rochelle community, ranging in size from studios to two-bedroom homes. 119 of the 477 homes will be affordable, with 20 units available to residents earning up to 50% of the area median income (AMI) and an additional 99 units available to residents earning up to 60% of AMI. Additionally, the building will include approximately 24,000 square feet of amenity spaces, inclusive of a resident fitness center, lounge, pool, roof deck and on-site parking.
“We are thrilled to be celebrating this milestone alongside our project partners as we move one step closer to bringing 500 Main Street to fruition for the New Rochelle community,” said Meredith Marshall, Co-Founder & Managing Partner of BRP Companies. “Downtown New Rochelle is experiencing a major revitalization, and we’re proud to play a part in one of the most significant economic development initiatives in the city’s history. When completed, 500 Main Street will offer a quality housing option to area residents, including 119 low-income households, and will be a component of a thriving Downtown.”
“500 Main Street is a catalytic public private partnership with the New Rochelle community at its heart,” said Yarojin Robinson, Managing Director, Goldman Sachs Asset Management Urban Investment Group. “We are proud to work alongside BRP Companies, HCR, Interfaith Dwellings Corporation and Westchester County on this project, which will provide a much-needed increase in New Rochelle’s supply of high-quality affordable housing and help to reactivate a historic corner of Downtown New Rochelle”.
“Working with local municipalities, non-profit organizations and building developers to come up with real solutions to the housing crisis currently facing Westchester is an important priority of my Administration,” said George Latimer, Westchester County Executive. “Through the providing of grant funds, we can help ensure our high-quality and affordable housing stock in Westchester continues to grow exponentially so families can continue to thrive in our home community.”
“The 500 Main Street residential complex helps move the needle in the revitalization of the Downtown New Rochelle area through the offering of an additional affordable housing option to the community,” said Mathew Wambua, Vice Chair & Head of Agency Lending at Merchants Capital. “Along with our project partners, we are proud to play a role in the financing of a project that will deliver affordable residences within a Class A, mixed-income building.”
We look forward to the affordable housing opportunities offered in this development which is conveniently located to public transportation, services and employment opportunities,” said Marc Harary, President of the Interfaith Dwellings Corporation. “IDC and BRP worked closely to assure that the affordable homes will address unmet needs in our community.”
HCR Commissioner RuthAnne Visnauskas said, “The State’s investment in 500 Main Street is part of our ongoing efforts to expand the supply of safe and modern housing opportunities and deliver new economic activity to our downtown districts. The mixed-income, mixed-use development will deliver new ground floor retail space, community space and 119 affordable apartments to help ensure that New Rochelle remains inclusive and accessible for hardworking New Yorkers of all incomes. This truly transformative development will benefit the city for decades to come.”
A $200 million construction loan was procured through a combination of both taxable and tax-exempt bonds issued by HCR’s Housing Finance Agency, with credit enhancement via an equal amount of proceeds provided by Goldman Sachs and Merchants Bank of Indiana with Wells Fargo serving as the bond underwriter. Additionally, HCR, Goldman Sachs and Merchants Bank of Indiana provided a $25.4 million participation construction loan. Goldman Sachs will also be providing $40.7 million in equity and $20.7 million in LIHTC equity.
Westchester County provided $5 million in grant funding and Interfaith Dwellings Corporation provided $2.5 million in low-interest rate debt. Permanent financing will be provided by a forward commitment from Merchants Capital via the Fannie Mae MTEB program.
BRP Companies is a New York-based real estate firm that is at the forefront of mixed-use development and acquisition of urban, multi-family properties. The firm offers a full complement of development, acquisition, construction, property, and investment management. With an experienced staff of 70, a $4.7 billion portfolio and 10.5 million square feet of current and completed development, BRP is uniquely positioned to meet the demands of urban housing consumers. The firm is an innovator in developing mixed-use, mixed-income, “walkable” urban housing with high-quality, and energy efficient properties throughout the city of New York and beyond. Please visit: www.brpcompanies.com
About the Goldman Sachs Asset Management Urban Investment Group (UIG)
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 2001, the Urban Investment Group within Goldman Sachs Asset Management has committed over $10 billion through real estate projects, social enterprises and lending facilities for small businesses and students, creating economic value and opportunities for underserved communities and families. Follow us on LinkedIn.
About Interfaith Dwellings Corporation (IDC)
Interfaith Dwellings Corp. was founded in 1968 by representatives of a number of New Rochelle-based religious organizations for the purpose of promoting the development of affordable housing. IDC has developed 420 units of senior housing, including Maple Terrace, Maple Center and Washington House in New Rochelle. Commencing in 2010, the IDC Board of Directors undertook an ambitious redevelopment effort designed to preserve its affordable housing portfolio well into the future. IDC’s properties have been completely renovated at a development cost of $67 million to create a new 30-year affordable life cycle for each development. IDC also positioned itself to crease new affordable housing opportunities in New Rochelle, and to support other housing and housing related efforts in the community. In addition to 500 Main, IDC has supported affordable housing at 10 LeCount Place and the Renaissance at Lincoln Park. It also worked with the Amicus Fund’s Landlord Risk Mitigation Program to open additional housing opportunities for very low-income households and the City’s Nourish All Program to address food insecurity issues during the pandemic and support for local restaurants.
Bob… I agree with you on the occupancy of the buildings
The comment was sincere……
We agree. I was amplifying your point.
The various “talking points” one hears, people complaining about downtown development are either no longer true or were never true.
I guess I ought to write an article about it so i can just paste a link each time
Unoccupied buildings???that is a New Rochelle Urban legend……like the story the Avalon buildings are all section 8….New Rochelle is the hot spot for real estate…it booming…can’t touch a house under 500k
Again, check Zillow for all those empty apartments. Not many. Avalons have been 95% occupancy for years.
There may be valid arguments against downtown development but no one is making them here.
Here is my building which opened January 2.
https://rew-online.com/stella-a-new-tower-featuring-380-residences-is-over-60-percent-leased-in-just-five-months/
Enjoy the picture bcuz pic is all that’s left. Building came DOWN 2day🚩🚩
Just what we need, another unoccupied building in downtown
Are you under the impression that there are unoccupied high rises in downtown New Rochelle?
Check Zillow, I think you will find that is incorrect.