Merchants Capital Provides $42M for Brooklyn Affordable Housing
Tredway will acquire the 138-unit building and invest $10 million for capital improvements
By Brian Pascus May 18, 2026 10:50 am
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Tredway has secured $41.5 million in acquisition and construction financing to purchase and renovate Restore Housing, a 138-unit affordable apartment complex in Brooklyn that opened more than 40 years ago, Commercial Observer can first report.
Merchants Capital provided the acquisition and construction financing, while Tredway is investing $10 million in capital improvements into the property. The New York City Education Construction Fund provided an extension of the ground lease on the property. SVN Affordable arranged the transaction.
The New York City Department of Housing Preservation and Development and Housing Development Corporation are partners with Tredway on the development of the project.
In a statement, Adam Sussi, managing partner at Tredway, called Restore Housing “a pillar of the Bedford-Stuyvesant neighborhood,” and noted that the asset includes residents from various socioeconomic backgrounds.
Tredway and New York City have assured that all apartment units in the building will remain as affordable housing for the next 99 years for those residents whose current income is less than 60 percent of the average median income.
“Restore Housing is emblematic of Tredway’s commitment to investing in opportunities that offer residents dignified and enriching places to thrive,” said Sussi.
Located at 260 Herkimer Street in Brooklyn’s Bed-Stuy neighborhood, Restore Housing is expected to receive new kitchen, bathrooms, and energy efficient appliances as part of Tredway’s pledged $10 million in capital improvements. Tredway will also install full-time on-site property management that will help with security and include an on-site resident service coordinator, who will aid residents with food assistance, transportation, health care tasks and securing public benefits.
Tredway has previously acquired and renovated Greene Clermont Houses and Tri-Block Houses Apartments, both in Fort Greene, Brooklyn.
Brian Pascus can be reached at bpascus@commercialobserver.com.
