Brownsville affordable housing project lands $78M construction loan

Brownsville affordable housing project lands $78M construction loan

Rendering by SLCE Architects.

December 15, 2023
Crain’s New York Business
By Mario Marroquin

Westchester-based real estate firm L+M Development Partners is gearing up to commence construction on the second phase of its Marcus Garvey extension project in Brownsville.

The developer recently secured a $78 million construction loan from Wells Fargo for the 8-story residential building at 305 Chester St., where it plans to deliver 109 apartments and community and commercial space in the next two years.

L+M said the building will be the first of three ground-up developments in the second phase of the extension project, which is slated to cost approximately $270 million. When completed, the second phase will deliver 285 affordable housing units total and 14,300 square feet of community and commercial space.

The developer is scheduled to break ground on the first building in January and has set an anticipated completion date of October 2025. The building will span 118,066 square feet and consist of 25 studio apartments, 46 one-bedroom units, 24 two-bedroom apartments and 14 three-bedroom units. Geothermal heating and cooling systems and rooftop solar panels will also be installed at the property.

Elaine Braithwaite, a senior director at L+M, said the building will bring much-needed affordable housing to Brownsville and be part of the revitalization of Livonia Avenue, a nearby thoroughfare that has experienced a wave of new public and private investments in recent years.

Approximately half of the apartments in the building will receive supportive housing services under the New York City 15/15 Supporting Housing Initiative, which provides housing to individuals who are homeless or have persistent mental health conditions, L+M said.

Altogether, the entire extension project, set to be complete after the second phase is finished, will deliver 633 affordable apartments and 20,000 square feet of commercial and community space. The price tag will be approximately $386 million.

L+M broke ground on the first phase of the project, at 367 Bristol St., 747 Thomas Boyland St. and 461 Chester St., in December 2019, five years after acquiring the entire portfolio of sites for $98.7 million, public records show. The developer erected 348 affordable apartments and 12,000 square feet of retail and community space as part of the first phase, which wrapped construction in December 2022.

L+M said the first building in the second phase will be eligible for full 420(c) tax credits for low-income housing development, and the building is financed with tax credits from the city as well as the state Housing Finance Agency, the U.S. Department of Housing and Urban Development and Wells Fargo.

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