Seven-Story MXD Planned in Queens

QUEENS, NY—CIT Group Inc. disclosed today a deal that will lead to the development of a new seven-story, 143,000-square-foot property that includes 114 apartments in Astoria, in the Long Island City/Hunters Point submarket.

CIT Real Estate Finance provided a $44.8 million senior secured term loan to a joint venture between the Treeline Cos., Mega Contracting and Glenmont Capital Management, LLC. The project will also include 133 parking spaces, nearly 20,000 square feet of retail space, and 3,000 square feet of community space. Financing was provided by CIT Bank, the US commercial bank subsidiary of CIT.

The Treeline Companies is a real estate investment firm; Mega Contracting is a real estate development and property management company focused in the New York City metropolitan area while Glenmont Capital Management is a Manhattan-based private equity fund manager focused on value-add and opportunistic real estate investments.

“This project is located in the Long Island City/Hunters Point sub-market of Queens, which has fast become an increasingly attractive market for renters seeking more affordable housing outside of Brooklyn and Manhattan,” says Michael Schor, CIO of the Treeline Companies. “CIT's knowledge and expertise of the local market was critical to this transaction, and we look forward to building this relationship.”

Adds Hercules Argyriou, VP of Mega Contracting, “We're excited to partner with Treeline on this project as we've seen a marked increase in development throughout Queens The need for new housing is only expected to increase in the coming years. In addition to CIT's lending expertise, we also want to thank Glenmont Capital, a New York-based real estate private equity fund manager, for providing us additional equity in this transaction.”

“We are pleased to lend to this joint venture,” says Matt Galligan, group head of CIT Real Estate Finance. “New housing is in increasing demand throughout New York, and Queens is fast becoming the next hot market. This project will be a great addition to the Astoria community, and we're proud to have provided this financing to make it a reality.”