Scale Lending Supplies $40M Loan for New Clinton Hill Apartment Building
By Andrew Coen September 28, 2021 11:38 am
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Developers Ranger Properties and KD Sagamore Capital have nabbed a $40 million construction loan to build a new multifamily property in Clinton Hill, Brooklyn, Commercial Observer has learned.
Scale Lending, the financing arm of Slate Property Group, provided the debt package for the ground-up construction project at 982-988 Fulton Street. The development will feature 113 apartments, with 30 percent of the units set aside for affordable housing.
Representatives for Ranger Properties and KD Sagamore did not immediately respond for comment.
This transaction adds to a busy 2021 for Scale, which also closed on a $65.9 million construction loan for 26-25 4th Street in Astoria, Queens, last week. The Manhattan-based lender has financed more than $1 billion in multifamily loans in the New York metropolitan market over the last 18 months.
“Within a two week period of time, we will close these three loans together, and we have another four or five of them that are lined up to close over the course of the next 30 to 60 days behind it. So there’s just a tremendous, tremendous amount of velocity in this space for us,” said Martin Nussbaum, co-founder and principal of Slate Property Group. “We’ve really become one of the more preferred lenders in the sort of plus-$50 million construction rental space that really found a good niche within that market.”
Scale, which was founded in 2018, has $2.5 billion of assets under management and owns more than 2,000 residential units across the New York City region, according to company officials. Nussbaum said Scale’s main focus for the next year will remain targeted in and around New York City, where he is bullish about the area’s multifamily market after it hit headwinds in 2020 during the height of the COVID-19 pandemic.
“The New York metropolitan area has very much stabilized from a rental perspective,” Nussbaum said. “Generally speaking, occupancies are back into where they had historically been, which is in sort of the mid- to upper 90s, and the rents that were concessioned have started to rebound and free rent is starting to pare back quite a bit.”
Andrew Coen can be reached at acoen@commercialobserver.com.
