The Midwood Group has secured $50 million in construction financing for a multifamily project in Brooklyn. Ponce Bank provided the loan for the new development of two contiguous apartment buildings, each with 99 units, located at 937 East 108th Street and 951 East 108th Street in Brooklyn's Canarsie neighbourhood. The transaction was finalised on 13 July.
The development will comprise a total of 198 residential units and span an area of 143,083 square feet. Additionally, 71 parking spaces are planned. Construction is scheduled to commence in early 2027.
Significance for the Housing Market
Carlos Naudon, President and CEO of Ponce Bank, emphasised the relevance of this development in a statement. He described the residential project as an investment in the growing housing supply of Brooklyn and New York City. A spokesperson for the Midwood Group stated that the nearly 200 units are expected to be ready for occupancy by December 2026.
The transaction was brokered by Arrow Real Estate Advisors, with their team led by Israel Mermelstein, Morris Betesh, and Louis Halperin. Israel Mermelstein, Senior Director at Arrow, commented: "Deals like this come together when the right sponsor, the right project, and the right capital partner are aligned." He added that Ponce Bank recognised the specific dynamics of the transaction as well as the sponsor's strength, capability, and experience.
Tax Incentives for the Project
The project benefits from tax incentives under the New York State 485-x programme, as a portion of the apartments will be designated as affordable. This underscores efforts to meet housing demand while also ensuring accessibility for various income brackets.
