M&T Bank Lends $54M for Construction on RXR’s Latest LI Project
RXR Realty has scored a $53.9 million loan from Buffalo, N.Y.’s M&T Bank to fund development of a Long Island apartment building, Commercial Observer can exclusively report.
The construction-to-permanent financing will fund the buildout of Village Square, a five-story multifamily building set to go up on Glen Street in central Glen Cove, a Nassau County town that abuts the Long Island Sound on the landmass’ northern shore. The 140-unit building will also include 15,000 square feet of retail space.
Jason Lipiec, M&T’s top executive for Long Island, said in a statement that the units will match the quality of RXR’s concurrent residential development in Glen Cove, Garvies Point.
“We expect Village Square to generate significant market demand, as these units will include many similar high-end finishes found within RXR’s Garvies Point project…while also offering downtown walkability,” Lipiec said.
When demolition for the project began late last year, RXR said that construction should finish by spring 2019, although a spokeswoman for RXR did not immediately respond to an inquiry about the latest estimate. Garvies Point broke ground in December 2016, and condominium unit sales began three months later.
Ripco Real Estate‘s Daniel Glazer and Jason Sobel have already begun representing RXR to lease Village Square’s forthcoming retail space. A flier for the property says that RXR will divide the storefronts into units ranging from 735 square feet to 4,600 square feet.
Median rent for a two-bedroom apartment in Glen Cove is just under $2,400—up from $2,000 one year ago, according to Trulia. A stop on the Long Island Rail Road‘s Oyster Bay branch serves Manhattan commuters who live in the town, where the median family income is $108,000.M&T and RXR have become fast collaborators: The two teamed in August as lenders to fund Extell Development Company‘s Brooklyn Point multifamily development, with M&T leading the senior construction financing while RXR chipped in a $105 million mezzanine loan. The pair also worked together as lenders to back development for One Manhattan Square, Extell’s condo project on the Lower East Side.