Starwood Lends $96M on Bronx Aldi-Anchored Mixed-Use Tower 

Sioni Group has secured a $96.1 million loan to refinance a newly completed mixed-use property in the Bronx, Commercial Observer has learned.

Starwood Property Trust supplied the bridge loan on The Arabella, a 165-unit multifamily property with 82,800 square feet of retail space anchored by German grocery chain Aldi, sources told CO. 

The property is at 4720 Third Avenue, a block south of Fordham University’s Rose Hill campus. Sioni acquired the development site in January 2022 and completed the nine-story project in spring 2024. The development received a tax abatement under the former 421a program since 60 of the apartments were designated as affordable housing.

Arrow Real Estate Advisors arranged the transaction with a team led by Morris Betesh, Morris Dabbah and Louis Halperin in conjunction with Meridian Capital Group’s David Hayum. Arrow confirmed the deal but declined to name the lender.

“Sponsorship did a fantastic job pre-leasing nearly the entire commercial component of this building but needed additional time to lease up the residential component,” Betesh said in a statement. “This bridge loan allowed the sponsor to pay off their maturing construction loan while simultaneously reducing their interest rate and recourse obligations.” 

The Arabella’s retail portion is 90 percent pre-leased with Aldi as the anchor tenant. Other notable tenants include fast-food chains Dunkin’, Pizza Hut, Maya’s Snack Bar and Atomic Wings.  

Residential amenities at The Arabella include a fitness center, outdoor terrace with lounge areas, package room, laundry room and part-time doorman.

Officials at Starwood and Sioni Group did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com