NEW YORK CITY—Rockrose Development Corp. has completed a $270 million construction financing for its 974-unit “80/20” rental apartment tower complex at 43-25 Hunter St. in the Court Square section of Long Island City, in Queens.
Rockrose negotiated directly with the lead bank lender, Wells Fargo, together with TD Bank and Capital One for the multi-bank loan. The loan was made possible through the sale directly to the banks of a mix of tax exempt and taxable bonds issued by the New York State Housing Finance Agency.
The building will consist of two adjoining towers, one standing 14 stories and the second featuring 50 stories. Under the state's 421a tax incentive program, 195 apartments, or 20%, will be set aside as affordable for a period of 30 years for renters earning up to 60% of the area median income. The balance will be rent-stabilized market rate units.
“This is Rockrose's first 80/20 project outside Manhattan,” declares president Justin Elghanayan. “We're fortunate that Long Island City is becoming such a desirable place to live that the market-rate rents have gotten to the level where the 80/20 program makes sound financial sense. We are delighted to do our part for the creation of affordable housing in New York City."
The total development cost of 43-15 Hunter St. is $543 million. Construction is underway with the lower tower superstructure having reached the 10th floor level. Completion is scheduled for late 2017.
For more than two decades, Rockrose has invested in the Court Square district of Long Island City as well as the Long Island City waterfront. The company is redeveloping the nearby Eagle Lofts complex at 43-22 Queens St. In all, Rockrose plans to construct 2,500 rental units in Court Square and is also seeking restaurateurs and independent retail establishments to create a vibrant retail strip along the Court Square section of Jackson Avenue.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
