New Rochelle developer secures $35M funding package for 75-unit rental

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Greystone has arranged a $35 million funding package for New Rochelle developer Young Companies’ new mixed-use development on the town’s North Avenue.

The finance company arranged
a $14 million ground lease provided by Haven Capital and a $21 million leasehold
construction loan from RMWC to finance the development of the The Illustrator,
a four-story development with 75 apartments and 7,300 s/f of commercial space at
600 North Avenue in New Rochelle.

The Greystone Capital
Advisors team led by Drew Fletcher and Matt Klauer served as exclusive advisor
in arranging the financing on behalf of the Sponsor.

Young Companies’ CEO,
Robert Young, is a lifetime resident of New Rochelle and one of the area’s leading
developers of high-quality multifamily housing.

The Illustrator is
directly across the street from The Young Companies’ The Rockwell, the 114-unit
property with 25,000 s/f of retail that the developer completed at the end of
2020. Together, the projects will provide more than 200 residential units and
revitalize the corridor along North Avenue between the MetroNorth stop and the
college district.

“We are proud to have worked with Young Companies,
Haven, and RMWC to deliver a creative full-stack debt solution that provides 90
percent loan-to-cost non-recourse financing during a challenging economic
environment. The Illustrator will raise the bar for urban living in New Rochelle,”
said Klauer.

“Greystone
Capital Advisors delivered a fantastic execution, and we are very happy to have
launched a relationship with Haven and RMWC,” said Young. “This complex
execution required careful collaboration and I’m delighted with the results.
The Illustrator is a significant addition to our portfolio and will further the
continued development of New Rochelle.”

“It was a pleasure working
with Greystone, Young Companies, and RMWC to use our Haven ground lease
structure to maximize funding proceeds at the lowest possible cost,” said Joe
Shanley, Head of Acquisitions, Haven Capital.

Marc Brooks, managing
director of RMWC, shared, “RMWC is pleased to bring its flexible construction
financing capabilities to this exciting project. We look forward to working
with The Young Companies, a sponsor with deep roots in the New Rochelle market.
We are also grateful to have completed our first closing with Greystone, who
brought together a complicated capital structure and enjoyed working closely
with Haven Capital throughout the closing process.”

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