Seventh Street Development Group has closed on a $62.25 million construction loan for the development of a seven-story, 162,000-square-foot mixed-use project in Brooklyn’s Crown Heights neighborhood. Eastern Union sourced the two year floating-rate loan, which covers the project’s construction process, from a joint funding venture between Invictus Real Estate Partners, Maxim Capital Group and Beach Point Capital Management.
Eastern Union President and Co-Founder Abraham Bergman and Vice President Yossi Orzel worked to procure the funding for the developer.
The development is located at 1730 Bedford Avenue at the site of a demolished Firestone Service Station. Seventh Street purchased the lot in 2019 and filed for the property’s demolition in September 2021, according to reporting from Brownstoner. The firm has tapped Rise Architecture to lead the project’s design. In November of that year, the developer filed permits for the project’s construction, which, when finished, will yield 57 multifamily units spanning 37,000 square feet, a 33,000-square-foot Lidl supermarket, as well as an additional 30,000 square feet of commercial space, 12,000 of which will be Class A office space. Residents will also have access to a 9,000-square-foot community facility.
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Units at 1730 Bedford Ave. will average 680 square feet, with select homes to be designated as affordable housing. The property will include 209 private parking spaces, according to details from New York YIMBY and the Brownstoner report.
Situated at the intersection of Bedford Avenue and Empire Boulevard, the project will be a half-mile east of Prospect Park, surrounded by employment, education, self-storage, dining and public transportation options. Manhattan and Queens are easily accessible via subway.
Affordable mixed-use endeavors
Mixed-use projects with select affordable units remain an attractive development class in Brooklyn, as exclusively affordable developments account for only 26.4 percent of the city’s pipeline of 17,169 units, according to data from a May 2023 report from Yardi Matrix. The addition of retail and commercial space adds to the both the property’s value and appeal to renters, particularly within one of the nation’s most competitive rental markets.
The Carlyle Group and Property Markets Group secured $520 million in financing for a 517-unit mixed-use property in Carroll Gardens earlier this year. In another recent deal, Greystone arranged $287 million in construction financing for Douglaston Development’s 1057 Atlantic Ave., a 17-story property that will include 456 units, 137 which will be affordable.