$235 million Broome Street Development obtains $162 million construction loan

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Gotham Organization and Goldman Sachs Urban Investment Group‘s joint venture building a two-building, 400,000 sq. ft. mixed-use project at 55 Suffolk Street and 64 Norfolk Street in Manhattan’s Lower East Side has secured just under $162.4 million in debt from Wells Fargo and US Bank to move ahead with construction, Commercial Observer (CO) reports.

Project owners have co-ordinated a $235 million capitalization of the Broome Street Development with a $70 million equity commitment, the publication reported.

The project designed by Dattner Architects will be built in two phases. In the first, a 378-unit, 30 story residential tower will rise at 55 Suffolk St. Then an affordable housing building at 64 Norfolk will be started in the spring of 2021. There will also be about 19,000 sq. ft. of retail space, anchored by the 40,000 sq. ft. headquarters of the Chinese American Planning Council (CPC).

The “completion of this financing, during one of the most economically challenging years in recent memory, is a testament to the strength” of its partnership with Goldman and the motivations of its team and its partners,” Bryan Kelly, Gotham Organization’s president of development, was quoted in a statement.

CO reports that the the New York City Department of Housing Preservation and Development (HPD) has granted more than $3 million per year in nine percent federal low income housing tax credits (LIHTC) 64 Norfolk portion of the development, including a 16-story affordable seniors housing building and a congregation area and cultural heritage center for the Beth Hamedrash Hagadol Synagogue.

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