A Brooklyn developer has secured significant funding for his latest multifamily project. David Grunfeld, through the entity GW Infinity, has acquired USD 45 million in construction loan financing to build a 99-unit residential building with an affordable housing component on church-affiliated land in Williamsburg, Brooklyn.
S3 Capital provided the ground lease loan for the development of the 17-storey complex at 277 North Eighth Street. 20 percent of the units will be designated as affordable housing under New York City's 485-x tax incentive programme. In December 2025, Grunfeld had filed plans for the demolition of a vacant two-storey building on the site, which is located on a parcel controlled by a long-term ground lease agreement with the Roman Catholic Church of Our Lady of Mount Carmel.
Shawn Safdie, Head of Acquisitions at S3 Capital, noted that the unconventional transaction involved structuring the loan around the ground lease and its terms. This enabled the borrower to proceed with construction without the capital commitment typically required for a direct purchase of the underlying land. Mr Safdie explained that this was an excellent example of S3 Capital's ability to structure creative financing solutions for complex real estate transactions. He added that this was the fifth loan S3 Capital had closed with this sponsoring team in this neighbourhood, giving them a very good understanding of the market and the nuances of development there.
Robert Schwartz, Co-Founder and Managing Partner of S3 Capital, emphasised that the deal highlighted S3's 'development background', which enables them to structure 'creatively tailored solutions' for the 'specific needs of a project'.
The property is located three blocks from the Bedford Avenue L train station, providing access to public transport to Manhattan. Williamsburg, as a submarket of Brooklyn, has experienced a tight multifamily market, according to S3, with vacancy rates of approximately 2 percent and rents rising by around 6 percent year-on-year, alongside a limited supply of new projects.
