NEW YORK CITY-Thanks to a recently closed $125 million loan, a 20-story, 181 unit luxury apartment building will rise on Broadway and 77^th Street. The building, to be called the Larstrand, is being developed by Friedland Properties, along with owner’s rep  and fee developer Rose Associates, which secured the loan.

The loan was funded by the issuance of bonds that were provided by the New York State Housing Finance Agency, which works “to create and preserve high quality affordable multifamily rental housing” that serves communities across the state, according to the agency’s website. Accordingly, 37 of the units at the Larstrand will be designated as affordable.

“I am excited to construct and market this exciting, new, Upper West Side rental,” said William Friedland, principal at Friedland Properties. “The site is shovel ready, and we plan to begin construction immediately with completion scheduled for third quarter 2013.”

The building will be a mix of studio, one-, two- and three-bedroom rentals on the residential side. There will also be 40,000 square feet of retail space and frontage along Broadway, between 77^th and 78^th streets, a portion of which CVS has agreed to lease.

Underscoring the landscape that the building will enter, Rose Associates senior managing director James Hedden said that there “is not a significant amount of new product in the pipeline,” adding that Manhattan rentals are currently 99% occupied. “The Larstrand is well-timed, especially when you consider the sustained demand the Manhattan market has shown for high quality, well designed rental product.”