Property developer Peter Fine has secured a $ 70 million construction loan for a massive housing project in East Harlem, a sign of life for the commercial credit market.
M&T Bank provided Fines Bolivar Development with funding for the 1998 Second Avenue 178 unit project between 102nd and 103rd Streets. Thirty percent of the development’s units will be reserved as affordable, and the 12-story building will have approximately 13,000 square feet of retail space on the ground floor and 500 square feet of communal space.
The project, for which Fine submitted plans in June 2019, is expected to cost a total of $ 91 million. The developer plans to complete the project by the first quarter of 2021 and get it ready for residents by next November, despite the restrictions the pandemic has placed on construction activity.
Fine bought the site in Late 2018 for $ 28.5 million. It consists of eight lots and is right on the path of the next phase of the Second Avenue subway.
Although Fine said it was more difficult to close the funding than it was before the pandemic, he said it was “a vote of confidence from the bank and me in New York City and the future of New York City”.
The loan was originally scheduled to close in November, but some of the assembly took longer than expected, so it was postponed to March, just as the coronavirus began to shut down all of New York, according to Drew Kessler, a vice president at M&T. He echoed Fine’s comment that despite the pandemic, the bank is still “very comfortable and confident about the project as a whole”.
Learn about real estate loans in Manhattan a sharp decline in April, the first full month after businesses shut down to slow the spread of the coronavirus pandemic. The top 10 largest loans of the month were just $ 742 million, down 72 percent from March. The $ 70 million M&T loan would have been the fifth largest in the past month.