Long Island City Apartment Tower Lands $425M Loan

BLDG Management has secured a $425M construction loan from a consortium of international lenders to build a 69-story residential tower in Long Island City.

Greystone arranged the financing for the 824-unit tower, called The Orchard, which will become the tallest residential building in Long Island City when it is completed.

The consortium of lenders was led by M&T Bank, U.S. Bank and Bank of China. Also providing financing was the Israel Discount Bank of New York, City National Bank and Bank Hapoalim.

Like many other NYC developers, BLDG Management raced to pour the foundation for The Orchard before the end of June last year in order to qualify to 421a tax abatements before the program expired.

Now, the developer will have to race to finish The Orchard in time for the state’s June 2026 deadline to remain eligible for the 421a tax breaks.

“Despite the challenging market, this significant financing demonstrates that there is still strong lender appetite for high quality multifamily projects, especially with an affordable component,” Greystone’s Drew Fletcher said, in a statement.

Thirty percent of the units at the 800K SF development, located at 42-02 Orchard Street, along Jackson Avenue, will be reserved for affordable units. The tower will feature ground-floor retail, as well as a swimming pool, a gym and several lounges.

Earlier this month, a twin-tower multifamily complex in Brooklyn’s Gowanus neighborhood this week joined the ranks of 421a-eligible projects that are moving forward: partners Property Market Group (PGM) and private equity firm Carlyle secured a $335M construction loan for the project.

The construction financing was provided by Apollo Global Management and Related Companies as part of a $500M recapitalization that includes $165M in equity. JLL represented the developers.

The Gowanus project, located at 267 Bond Street and 498 Sackett Street, is building two mixed-use towers that will encompass 517 apartment units over 52K SF of ground-floor retail space.

The project is one of several developments that have been initiated in an 82-block area surrounding the Gowanus Canal that was rezoned to in 2019 to facilitate the construction of more than 7.6M SF of new residential space as well as 1.5M SF of new commercial property.

In August, Domain Companies closed on a $176M construction loan for a 360-unit multifamily development that will feature two apartment towers at 420 Carroll Street on the Gowanus waterfront.

JLL Capital Markets arranged the financing from Bank OZK for Domain and its partners in the project, including Vorea Group, Silverstein Properties and affiliates of Cantor Fitzgerald.

The waterfront development, now under construction, will include a 20-story tower, a 15-story tower, more than 27K SF of retail space and a publicly accessible connection to the Gowanus Canal promenade.

About a quarter of the apartment units at the project will be designated as affordable housing, reserved for households earning 40% to 100% of the area’s median income.