Santander, Related Lend $135M on Crown Heights Multifamily Project
By Andrew Coen March 25, 2024 4:57 pm
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The Hudson Companies has sealed $135 million of construction financing to build a multifamily development in Crown Heights, Brooklyn, the developer announced Monday.
Santander Bank and Related Fund Management provided the loan on the planned nine-story project that will have 328 apartments and retail space at 975 Nostrand Avenue.
“This investment opportunity is illustrative of our Real Estate Debt Fund’s focus to provide financing to experienced and well-capitalized borrowers for the development of high quality residential assets in New York City and other major markets,” Chad Goodman, managing director at Related Fund Management, said in a statement.
Hudson Companies acquired the site, which previously housed an Associated Supermarket, three years ago from Midwood Investment & Development for $41.5 million, as Commercial Observer previously reported. The project received a tax exemption from New York State’s now-expired 421a program, since 99 of the residential units will be designated as affordable housing.
The deal was first reported by Crain’s New York Business.
Cushman & Wakefield (CWK)’s Gideon Gil, Zachary Kraft and Sebastian Sanchez arranged the transaction.
“With 99 units designated as affordable, this property will help fulfill a critical need for affordable housing in a submarket that has experienced sustained demand and a dearth of supply,” Gil said in a statement.
Resident amenities at 975 Nostrand will include a roof terrace, fitness center, yoga room, karaoke room and pet spa. As part of the Hudson Companies’ acquisition, it struck a deal to keep the Associated grocery store in a roughly 21,000-square-foot retail space for another 15 years. The project also has 4,200 square feet of additional retail along with 193 below-grade parking spots.
Construction of 975 Nostrand is expected to finish in the fourth quarter of 2025.
Marlee Busching-Truscott, managing director of development at Hudson Companies, said in a statement the project, in addition to creating 328 new apartments, will also deliver “a modern space for a beloved neighborhood supermarket, a community facility, and retail space right in the heart of Crown Heights.”
Officials at Santander did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
