Rockrose Development has secured $270 million in construction financing for its 974-unit “80/20” rental apartment tower complex at 43-25 Hunter Street in the Court Square section of Long Island City, 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.
43-25 Hunter Street will comprise two adjoining towers, one 14 stories and one 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 (AMI). The balance will be rent-stabilized market rate units.
Rockrose President Justin Elghanayan said, “We are delighted to do our part for the creation of affordable housing in New York City. This is Rockrose’s first 80/20 project outside Manhattan. 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.”
The total development cost of 43-15 Hunter Street is $543 million. Construction is underway with the lower tower superstructure having reached the 10th floor level. Completion is scheduled for late 2017.
Rockrose has a long history in the Court Square district of Long Island City. Last August, the company announced the full lease-up of Linc LIC, a new, 709-unit luxury residential tower in Court Square. They are also redeveloping the nearby Eagle Lofts complex at 43-22 Queens Street. Rockrose will renovate the existing building and convert it to rental apartments, as it did with The Archive, a former industrial building in Manhattan’s West Village. In all, Rockrose plans to construct 2,500 rental units in Court Square along with a new retail strip along the Court Square section of Jackson Avenue.