Goldman Sachs’ Urban Investment Group Leads $278M Financing for Queens Housing

A joint venture led by L+M Development Partners has secured $278 million in construction financing to build Arverne East Building D, the 320-unit first phase of the Arverne East master-planned development that will eventually turn 116 acres in Far Rockaway, Queens, into 1,650 units of affordable housing, Commercial Observer can first report. 

In addition to L+M, the joint venture sponsorship includes Urbane Development, The Bluestone Organization, Mega Group Development and Triangle Equities Development.

Sara Levenson, managing director at L+M Development Partners, described Arverne East as “a transformative development,” and added that it brings new affordable housing that is both sustainable and resilient to extreme weather events in the vulnerable neighborhood. 

“Today’s closing represents an exciting milestone in advancing a bold new vision for the Arverne East community, made possible through the collaboration of all our public and private partners,” she added. 

The Urban Investment Group at Goldman Sachs Alternatives is the principal provider of the debt together with the New York City Department of Housing Preservation and Development, the New York City Housing Development Corporation, and New York State Homes and Community Renewal, as well as some funds provided by the New York City Council and the office of the Queens Borough President.

“Affordable homeownership is one of the most powerful ways to catalyze stability and generational wealth, and Arverne East is opening that door for families who have long called the Rockaways home,” Asahi Pompey, chair of the Urban Investment Group at Goldman Sachs Alternatives, said in a statement. 

Bluestone Organization President Eric Bluestone noted that the construction financing closing is the culmination of “two decades of planning and collaboration with the Rockaway community.”

Located at 116 Beach 36th Street in Queens, Arverne East Building D will bring 230 affordable rental units and an additional 90 units that could be privately owned into the Far Rockaway neighborhood, which faces the Atlantic Ocean and is susceptible to rising sea levels. 

The area was severely damaged by Superstorm Sandy in October 2012. That event led local community leaders and developers to begin a plan of action that turned into Averne East, a new development that will combine state-of-the-art construction techniques and net-zero technologies to mitigate the impact of coastal flooding from weather events like Superstorm Sandy and the 2021 flash floods from Hurricane Ida, which killed 13 people and caused $75 million in damage to the New York City subway system. 

These new technologies include a roof-mounted solar photovoltaic system that works in tandem with ground-source heat pumps to provide heating and cooling to the building; on-site bioswale gardens to trap and retain stormwater; and first-floor spaces equipped with numerous flood-proofing measures. 

Moreover, all residential and retail spaces will be set above flood levels.

“For too many families, especially in communities like the Rockaways, the chance to build stability and generational wealth through homeownership has been out of reach,” said HCR Commissioner RuthAnne Visnauskas. “This development helps change that by delivering affordable homes to rent and buy.”

The larger development of Arverne East saw the first phase of construction completed in July 2023, when a 35-acre nature preserve and the Coastal Conservation Center opened. This section of the development brought a community center, public restrooms, and administrative space for the New York City Department of Parks & Recreation. 

The East Wing of the project is expected to bring an additional 90 affordable housing units, 6,800 square feet of commercial space, and an 8,000-square-foot community facility to the development. 

All told, the entire scope of Arverne East mixed-use development will deliver 1,650 apartment units along with new retail spaces, public commercial spaces, a boutique hotel and hundreds of parking spaces to Far Rockaway. 

In a statement, Queens Borough President Donovan Richards Jr. called Arverne East “the embodiment of responsible building,” noting the thousands of affordable units and new sustainability technologies.

“I am deeply grateful to L+ M Development Partners and Urbane Development for their partnership as we push the Rockaway renaissance forward into 2026 and beyond,” he added. 

Construction is expected to wrap in 2028. 

Brian Pascus can be reached at bpascus@commercialobserver.com.