New Rochelle Tower Project Secures $294 Million Construction Financing Deal
Real Estate In-Depth | March 1, 2022
NEW ROCHELLE—BRP Companies, the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), New York State Homes and Community Renewal, Westchester County, Interfaith Dwellings Corporation, Merchants Bank of Indiana, Wells Fargo, and Fannie Mae announced on Feb. 28 the closing of $294 million in construction financing for the 477-unit, mixed-use development located at 500 Main St. in Downtown New Rochelle.
The project ownership said construction was expected to begin on the 26-story project late last month.
Upon completion, 500 Main St. will deliver 477 residential units to the Downtown New Rochelle community, ranging in size from studios to two-bedroom homes. A total of 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.
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.
“We are thrilled to be celebrating this milestone alongside our project partners as we move one step closer to bringing 500 Main St. 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 St. is a catalytic public private partnership with the New Rochelle community at its heart,” added 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.”