BFC Partners Closes on $250M Construction Loan for Coney Island Development

BFC Partners has secured a $250 million construction loan to complete the third phase of a major affordable housing development in Coney Island, Brooklyn, Commercial Observer can first report.

The loan, which was provided by Citi Community Capital, will allow BFC to complete the three-building project along Surf Avenue and deliver a total of 1,242 homes to the neighborhood, according to a Thursday announcement. Construction is set to be complete in 2028.

The city officially partnered with BFC last week for the project’s Coney Island Phase III, which will bring 420 apartments, roughly 10,700 square feet of commercial space, and about 9,700 square feet of community facility space to 1709 Surf Avenue, as CO previously reported.

“Closing on and starting construction of the third and final phase of this transformational development along Surf Avenue in Coney Island marks a major milestone for our team,” Joseph Ferrara, principal at BFC, said in a statement.

“We are proud to continue investing in the future of this vibrant community and are especially grateful to our city partners and to Citi for their unwavering support and collaboration,” Ferrara added. “Together, we’re building lasting affordability, opportunity and impact for Coney Island.”

The first phase of the project at 2926 West 19th Street was completed in 2021 and created 446 affordable units, while the second phase at 1607 Surf Avenue was finished last year and delivered another 376 units, according to the announcement. BFC worked on both phases.

In addition to Citi’s loan, the Coney Island development has received nearly $700 million in investments, including more than $90 million in subsidy from the Adams administration and $116 million in construction financing from the New York City Housing Development Corporation.

“Citi Community Capital is pleased to have been a part of the team that BFC Partners assembled, providing construction debt and long-term equity, that helped finance 1709 Surf Avenue,” Richard Gerwitz, a managing director at Citi, said in a statement.

BFC’s project isn’t the only new development going up on Coney Island’s Surf Avenue.

In February, the New York City Economic Development Corporation (EDC) issued a request for proposals to build a 500-unit project called Coney Island West on an 80,000-square-foot, city-owned site between West 21st and West 22nd streets, CO reported. The EDC will select a developer for that project by the end of the year.

Mayor Eric Adams also has plans to renovate the summer tourist hotspot’s Riegelmann Boardwalk and Abe Stark Sports Center, as well as update the neighborhood’s streets and sewers.

Isabelle Durso can be reached at idurso@commercialobserver.com.