BRP Companies, the Urban Investment Group within Goldman Sachs Asset Management (Goldman Sachs), New York State Homes and Community Renewal, Westchester County, Interfaith Dwellings Corporation, Merchants Bank of Indiana, Wells Fargo, and Fannie Mae today announced the closing of construction financing for a 477-unit, mixed-use development located at 500 Main Street in Downtown, New Rochelle. Construction is slated to begin on the project in February of 2022.
Upon completion, 500 Main Street will deliver 477 residential units to the Downtown New Rochelle community, ranging in size from studios to two-bedroom homes. 119 of the 477 homes will be affordable, with 20 units available to residents earning up to 50% of the area median income (AMI) and an additional 99 units available to residents earning up to 60% of AMI. Additionally, the building will include approximately 24,000 square feet of amenity spaces, inclusive of a resident fitness center, lounge, pool, roof deck and on-site parking.
“We are thrilled to be celebrating this milestone alongside our project partners as we move one step closer to bringing 500 Main Street to fruition for the New Rochelle community,” said Meredith Marshall, Co-Founder & Managing Partner of BRP Companies. “Downtown New Rochelle is experiencing a major revitalization, and we’re proud to play a part in one of the most significant economic development initiatives in the city’s history. When completed, 500 Main Street will offer a quality housing option to area residents, including 119 low-income households, and will be a component of a thriving Downtown.”
“500 Main Street is a catalytic public private partnership with the New Rochelle community at its heart,” said Yarojin Robinson, Managing Director, Goldman Sachs Asset Management Urban Investment Group. “We are proud to work alongside BRP Companies, HCR, Interfaith Dwellings Corporation and Westchester County on this project, which will provide a much-needed increase in New Rochelle’s supply of high-quality affordable housing and help to reactivate a historic corner of Downtown New Rochelle”.
“Working with local municipalities, non-profit organizations and building developers to come up with real solutions to the housing crisis currently facing Westchester is an important priority of my Administration,” said George Latimer, Westchester County Executive. “Through the providing of grant funds, we can help ensure our high-quality and affordable housing stock in Westchester continues to grow exponentially so families can continue to thrive in our home community.”
“The 500 Main Street residential complex helps move the needle in the revitalization of the Downtown New Rochelle area through the offering of an additional affordable housing option to the community,” said Mathew Wambua, Vice Chair & Head of Agency Lending at Merchants Capital. “Along with our project partners, we are proud to play a role in the financing of a project that will deliver affordable residences within a Class A, mixed-income building.”
We look forward to the affordable housing opportunities offered in this development which is conveniently located to public transportation, services and employment opportunities,” said Marc Harary, President of the Interfaith Dwellings Corporation. “IDC and BRP worked closely to assure that the affordable homes will address unmet needs in our community.”
HCR Commissioner RuthAnne Visnauskas said, “The State’s investment in 500 Main Street is part of our ongoing efforts to expand the supply of safe and modern housing opportunities and deliver new economic activity to our downtown districts. The mixed-income, mixed-use development will deliver new ground floor retail space, community space and 119 affordable apartments to help ensure that New Rochelle remains inclusive and accessible for hardworking New Yorkers of all incomes. This truly transformative development will benefit the city for decades to come.”
A $200 million construction loan was procured through a combination of both taxable and tax- exempt bonds issued by HCR’s Housing Finance Agency, with credit enhancement via an equal amount of proceeds provided by Goldman Sachs and Merchants Bank of Indiana with Wells Fargo serving as the bond underwriter. Additionally, HCR, Goldman Sachs and Merchants Bank of Indiana provided a $25.4 million participation construction loan. Goldman Sachs will also be providing $40.7 million in equity and $20.7 million in LIHTC equity.
Westchester County provided $5 million in grant funding and Interfaith Dwellings Corporation provided $2.5 million in low-interest rate debt. Permanent financing will be provided by a forward commitment from Merchants Capital via the Fannie Mae MTEB program.
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