Pacific Life Lends $94M for New Rochelle Apartments Build

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LCOR has sealed $94 million of construction financing to build a new all-electric residential tower in downtown New Rochelle, N.Y, Commercial Observer can first report.

Pacific Life supplied the loan for LCOR’s 28-story project at 247 North Avenue that is being billed as one of the largest residential geothermal projects in New York state. 

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The project, which is less than two blocks from the New Rochelle train station, will feature 307 units along with 1,800 square feet of ground-floor retail space and parking for 257 vehicles. 

The building will utilize a geothermal system that provides heating and cooling from a series of geothermal wells under the building, thereby reducing carbon emissions while also lowering utility costs. It is slated for completion in the second quarter of 2025. 

“Advancing sustainability initiatives, like geothermal systems, are integral to our development approach,” Anthony Tortora, senior vice president and principal at LCOR, said in a statement. “Upon completion, 247 North Avenue will use less energy and emit less carbon than buildings with more traditional HVAC systems.”

The 247 North project will mark LCOR’s second multifamily asset utilizing geothermal technology, following its development of 1515 Surf Avenue in Brooklyn, which will feature 463 units with 30 percent designated as affordable housing upon completion in early 2024. Thirty-one of the 247 North units will be set aside as affordable apartments for residents earning 80 percent of the area median income.

JLL (JLL) arranged the transaction with a capital markets debt advisory team led by Bob Tonnessen and Steven Klein.

Tonnessen said in a statement that Pacific Life was a “terrific partner” in helping to facilitate LCOR’s New Rochelle project “at a time of significant continued demand” for the city, which is in Westchester County on the border of New York City. 

In the last year, median apartment rents have jumped by more than 7 percent to $2,418 a month, according to local brokerage data cited by JLL. 

Officials at Pacific Life did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com