Ponce Bank Lends $50M for Canarsie Apartments
By Andrew Coen July 17, 2026 11:35 am
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Midwood Group has landed $50 million of construction financing to build a multifamily project in Brooklyn, Commercial Observer has learned.
Ponce Bank supplied the loan for the ground-up development of two contiguous apartment buildings with 99 units each at 937 East 108th Street and 951 East 108th Street in Brooklyn’s Canarsie neighborhood.
“This residential development represents an important investment in Brooklyn and in New York City’s growing housing supply,” Carlos Naudon, president and CEO of Ponce Bank, said in a statement.
Arrow Real Estate Advisors arranged the transaction, which closed July 13, with a team led by Israel Mermelstein, Morris Betesh and Louis Halperin.
The 198-unit apartment complex will span 143,083 square feet with 71 parking spaces and is slated to begin construction in early 2027. The project benefits from tax abatements under New York State’s 485-x program since a portion of the apartments will be designated as affordable.
“Deals like this come together when the right sponsor, project, and capital partner are aligned,” Mermelstein, senior director at Arrow, said in a statement. “Ponce Bank understood the specific dynamics of the transaction and recognized the strength, ability, and experience of the sponsorship.”
A spokesperson for Midwood Group said the nearly 200 units will be ready for occupancy in December 2026.
Andrew Coen can be reached at acoen@commercialobserver.com.
