Santander, Related Provide $73M Construction Loan for Mixed-Use Development

Hudson Companies has secured $73 million in construction financing to build Pelham House, a five-story, 127-unit mixed-income and mixed-use housing development in Pelham, N.Y., that will include a fire station and police department building. 

Santander and the Related Real Estate Debt Fund provided a majority of the financing together with equity sourced from a joint venture “Green Fund” that Hudson Companies shares with two New York City pension funds, the New York City Employees’ Retirement System and the Teachers’ Retirement System of the City of New York. 

The project is several years in the making. Local developer Excelsior Development secured the bidding rights to build the project in 2019 and formed a partnership with Hudson Companies in 2020. 

Joe Kohl Riggs, principal of Hudson Companies, thanked Village of Pelham Mayor Chance Mullen and the Village’s Board of Trustees for working with his firm to create a project that adds housing to the upper New York neighborhood. Pelham sits just north of the Bronx, between Mount Vernon and New Rochelle in Westchester County.

“Hudson could not be prouder to deliver a transformational project that addresses a wide range of needs for the community with its much-needed housing and state-of-the-art Municipal Center,” said Riggs. “We are grateful for the opportunity to partner with and invest in the future of Pelham.”

Located in central Pelham at 217 Fifth Avenue, Pelham House will provide 127 units of housing, including six affordable units, as well as 219 parking spaces, a 5,300-square-foot ground-floor retail space, and a 27,000-square-foot Municipal Center that will house a new fire and police station plus several administrative offices for city business. 

“From the beginning, one of our goals was to create a stunning new landmark for the village and to help revitalize this part of the downtown,” said Patrick Normoyle, a Pelham resident and one of the principals on the joint venture development team. “With the imminent completion of the new Municipal Center, we think we have done just that and look forward to continuing work on the mixed-use part of the project.”

Brian Pascus can be reached at bpascus@commercialobserver.com