ZD Jasper Realty has landed $66.1 million in financing for its planned residential mixed-use development in Woodside, Queens — an area that's seen rents boom thanks to limited supply.
The loan was issued by First Citizen Bank, with Ripco Real Estate arranging the deal, according to a report from the Commercial Observer. The site at 64-11 Queens Boulevard was purchased by ZD Jasper originally for $18.62 million, the CRE outlet further noted.
The project calls for a 14-story tower and 175 apartment units. Given that a portion of the units are classified as affordable, the development qualifies for 485x tax abatement. Additionally, the building will include 11,318 square feet of retail space at the ground level and 29 parking spaces.
Perhaps most importantly is the site's location. Not only is it within walking distance to the Woodside Long Island Rail Road station and the 7 subway line — but the multifamily inventory in New York City's outer boroughs is scarce, according to James Murad of Ripco, who helped arrange the financing.
“There’s way more demand for units than supply of multifamily units coming online,” Murad told the CO, adding that rents in Woodside have grown by more than 20 percent on average over the past three years.
“Most new multifamily products today have to be built under 485x, right, and from what we’re seeing, it’s tougher for developers to make the numbers pencil on those projects.”
As NYC deals with a housing crisis, with the NYC Charter Revision Commission estimating that the metro is enduring a shortage of roughly 500,000 units, momentum appears to be slowing in terms of permitting. While the metro earned the most approvals among the top markets in a 12-month period ending July, analysis by RealPage (24,160), the number represented a 16 percent annual drop.
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