NEW YORK CITY-Partnering to help spur development in Upper Manhattan, Citi Community Capital, Next Street, Carver Community Development Corp. and NCIF closed on $35 million of permanent financing for 4469 Broadway, an eight-story, 85-unit mixed-use property in Washington Heights.
The financing was structured through the New Markets Tax Credit Program, a federal initiative designed to create new or higher investments in businesses and real estate projects located in low-income communities. Under the terms of the deal, Citi provided $10.2 in equity and a seven-year $17 million leverage loan for the project.
“Faced with a tight deadline, the project sponsors and our financing partners truly came together and managed to close a very complex transaction,” says William Yates, director of Citi Community Capital, in a statement. “Our role in this project is emblematic of Citi’s commitment to lend and invest in the communities where we do business.”
The development—constructed by Floral Park, NY-based Jackson Development Group—features 85 units of affordable and workforce housing; 8,500 square feet of retail space occupied by Deals and Dollar Tree; a new home for a Columbia University-affiliated Head Start program serving more than 300 neighborhood children; a 60-space parking garage; and office space. An estimated 135 construction jobs were created, and the project is expected to create more than 100 permanent jobs.
Serving as an advisor to Jackson Development Group, Gloria Lee, a partner at Next Street, a lending firm that provides capital to construction projects in urban markets across the county, says financing for mixed-use development is challenging, especially in lower-income communities – but the partnership worked.
“Next Street is incredibly proud to have secured both senior leverage debt and tax equity to help our client rebuild this block of Washington Heights,” she says, in a statement.
Average rents in the building are estimated at $1,561, according to Zillow.
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