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Silverstein Properties has sealed $165 million of construction financing for its planned mixed-use project in Astoria, Queens, Commercial Observer has learned.
Mexico City-based Banco Inbursa provided the floating-rate loan on Silverstein’s 13-story development at 44-01 Northern Boulevard, which will be built on a 63,000 square-foot lot in a federally-designated opportunity zone. It will feature 287,264 square feet of residential space and 15,587 square feet designated for commercial use.
Jeffrey Deitrich, senior vice president and portfolio manager at Silverstein, said Silverstein’s previous relationship with Banco Inbursa was invaluable in bringing the deal to the finish line in a challenging commercial real estate debt market amid rising interest rates. Silverstein obtained the financing at a 60 percent loan-to-cost, according to Deitrich.
“We had a number of conversations with a number of lenders as the market changed,” Deitrich told CO. “This shows the importance of existing lender relationships.”
The Hill West Architects-designed project will feature 354 apartments, with 25 percent of them designated as affordable housing under the state’s expired 421a tax abatement program, and 156 underground parking spaces.
Silverstein acquired the property for $39.7 million from Major Auto World after the land was rezoned in 2019 from its previous industrial use to allow residential housing. Construction commenced in spring 2022 and the building is expected to open to residents in spring 2024.
Deitrich said the project will complement Astoria’s massive Innovation QNS development while also underscoring how tax credits under the opportunity zone program can help spur more affordable housing units.
“It’s a good example of the opportunity zone program directing dollars into neighborhoods as it was intended,” Deitrich said
Officials at Banco Inbursa did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
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