M&T Bank Leads $425M Construction Loan on Long Island City Resi Tower
By Andrew Coen June 21, 2023 2:01 pm
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BLDG Management Company has nabbed $425 million of construction financing to build the tallest residential tower in Long Island City, Queens, Commercial Observer can first report.
M&T Bank (MTB) led the $425 million loan for the planned 69-story development known as The Orchard, while U.S. Bank and Bank of China (BACHF) were co-joint lead arrangers on the deal, according to Greystone Capital Advisors, which arranged the transaction. Israel Discount Bank, City National Bank and Bank Hapoalim (BKHYY) also contributed to the loan.
Greystone Capital Advisors’ Drew Fletcher, Paul Fried and Bryan Grover arranged the financing.
“Despite the challenging market, this significant financing demonstrates that there is still strong lender appetite for high-quality multifamily projects, especially with an affordable component,” Fletcher, president of Greystone, said in a statement. “The Orchard will transform the Long Island City skyline while also providing desperately needed affordable housing for the neighborhood.”
Located at 42-02 Orchard Street, The Orchard will include 824 apartments, 207 parking spaces and 13,000 square feet of above-grade retail space. The property’s amenities will feature a 24-hour attended lobby, a fitness center, indoor and outdoor swimming pools, a spa, a children’s playroom, a game room and movie screening rooms. It will also have an outdoor landscaped roof deck with features that include a pickleball court, running track, barbeque area and dog park.
When completed around 2026, the property will be one of the latest multifamily developments eligible to receive a 35-year real estate tax exemption under the recently expired 421a Affordable New York Housing Program, which requires 30 percent of the units be set aside for households earning at or below 130 percent of the area median income, according to Greystone.
“The Orchard is a reflection of our deep commitment to building best-in-class multifamily rental projects that expand access to housing and benefit the communities in which they serve,” Lloyd Goldman, founder and president of BLDG Management, said in a statement. “We are also incredibly thankful to our trusted lending partners for their support and confidence despite the exceptionally challenging credit environment.”
“M&T Bank is happy to support our longstanding customer BLDG Management Company in bringing much needed affordable housing to Long Island City,” Matt Petrula, executive vice president and head of balance sheet lending at M&T Bank, said in a statement. “The Orchard will be an excellent addition to the rapidly developing neighborhood.”
Spokespeople for U.S. Bank, Bank of China, Israel Discount Bank, City National Bank and Bank Hapoalim did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
