SCALE Lending Announces $135 Million Construction Loan for Bronx Multifamily Projects
SCALE Lending, the debt financing arm of Slate Property Group, has announced a major financial backing with a $135 million construction loan aimed at two new multifamily residential projects in the Bronx, NY. Specifically located at 261 Grand Concourse and 315 Grand Concourse in the Mott Haven neighborhood, these transformative projects are being spearheaded by the Beitel Group, led by Ben Beitel. The ambitious plan involves the construction of two 14-story residential towers aimed at revitalizing the housing market in the Bronx.
The Beitel Group will leverage this significant loan to support the ground-up construction of the residential towers, covering a combined area of 348,000 square feet. Demonstrating meticulous planning, the project has already seen the demolition of existing structures and the completion of excavation work since the Beitel Group acquired the sites in April 2022. Prestige Construction NY is on board as the general contractor for this major endeavor, which is expected to reach completion by November 2025. Both properties fall under the 421a program, a tax incentive initiative designed to stimulate the construction of multifamily residential buildings.
Upon completion, the two buildings will collectively house 405 residential units, ranging from studios to two-bedroom apartments. Additionally, the development will provide 136 parking spaces and a 5,100-square-foot shared recreation area. Amenities to serve the residents of both towers will be strategically positioned on the first and second floors of 261 Grand Concourse, aimed at fostering community living and convenience.
The announcement underscores the robust and growing demand for multifamily housing in the Bronx. Martin Nussbaum, Co-Founder and Principal at Slate Property Group, highlighted the advantage of partnering once again with the Beitel Group, which has a $2 billion national portfolio and a commendable history of successful multifamily projects in NYC and beyond. This new venture continues SCALE’s growth trajectory in 2024, as evidenced by recent financial activities, including a $150 million construction loan for another 13-story project at 120 East 144th Street in the Bronx, among other significant financings totaling $1 billion over the past year.
Additional SCALE Lending financings mentioned include a $75 million bridge loan for a multifamily development in Little Ferry, NJ, a newly completed apartment in Brooklyn’s Clinton Hill, and two cross-collateralized loans amounting to $243 million for Jersey City multifamily buildings in the Journal Square neighborhood. SCALE’s strategic success is attributed to the strong local relationships cultivated over time, as noted by Daniel Ridloff, Managing Director of SCALE. These partnerships are fundamental in closing deals and delivering high-quality multifamily projects, particularly in a market where traditional lenders remain cautious.
The new developments are strategically located to benefit from excellent transportation links, specifically the nearby 138th Street Grand Concourse subway station, providing residents with quick access to Grand Central Station. Additionally, its proximity to Bruckner Boulevard offers easy access to Mott Haven’s primary areas for dining, retail, and newly developed waterfront locales such as Bankside Park.
In summary, SCALE Lending’s substantial construction loan to the Beitel Group underscores the strategic importance of collaboration and recognition of rising demand in the housing market. The careful planning and strong partnerships involved are set to significantly enhance the residential landscape of the Bronx, promising to deliver a transformative urban living experience.
