The developers behind a mixed-use project that includes the historic Victoria Theater in Harlem, N.Y., has secured a $167.5 million construction loan. Slate Property Group provided the loan, which refinances the original $132 million loan from Goldman Sachs, according to public records. The financing, which was arranged by Two Bins Capital, will be used for Lam Group and Exact Capital Group’s ground-up construction of Victoria Tower.
The 26-story development is located at 233 W. 125th St. and will have 191 rental units, 103 of which will be affordable units for those making between 50 and 130 percent AMI. The property is on a ground-lease from Empire State Development Corp. and construction on the project has already significantly advanced. The developers have also already accepted applications for the affordable units.
Besides the residential portion of the Victoria Tower project, the developers are also looking to redevelop Victoria Theater and build a new theater, both of which will be operated by the Apollo Theater. The theaters will increase the Apollo Theater’s capacity by approximately 300 seats and will give the iconic theater a space to operate in while it’s undergoing renovations. Lam Group and Exact Capital are also planning to include a 210-key Marriott Renaissance hotel, 55-car parking garage, 24,000 square feet of retail space and another 25,000 square feet of cultural and arts space as part of the mixed-use development.
PROVIDING FINANCING THROUGHOUT NEW YORK
While this refinancing is for a Harlem development, Slate Property Group’s affiliate, SCALE Lending, has been recently active in the Brooklyn affordable housing market. In February, the lending affiliate provided $55 million in construction financing for the development of a 158-unit community in Brooklyn’s Crown Heights neighborhood. The day after the Crown Heights loan, SCALE Lending provided a $137 million loan for the acquisition and the construction of a 300-unit community in Brooklyn’s Williamsburg neighborhood.
The majority of SCALE’s recent transactions were based in Brooklyn, but the company has also provided capital for projects in Jersey City, N.J., and Westchester County, N.Y. Closer to Victoria Tower, the company also provided $59 million towards the ground-up construction of a 113-unit multifamily property in East Harlem.