S3 Capital originated the loan for the site positioned at 465 West 165th Street in Washington Heights, with Institutional Property Advisors arranging it.
S3 Capital pointed to the opportunity that lies in the market that's severely supply-constrained. The real estate lender said that in the second quarter of 2025, Washington Heights hosted a residential vacancy rate of just 0.8 percent. And during the fourth quarter, rents in the area rose by 3.9 percent year-over-year.
The additional tailwind is the thousands of students who attend medical institutions and universities nearby, according to Robert Schwartz, co-founder and principal of S3 Capital.
We have been watching student housing closely for some time. The supply-demand story mirrors what we see across multifamily except in many university markets the imbalance is even more acute," Steven Jemal, managing director of origination at S3 Capital, added in comments in a statement.
Upper Manhattan and the Washington Heights neighborhood has thousands of students and capacity to house only a fraction of them. That kind of structural gap, paired with a sponsor who has spent years developing connections in this area made this a clear opportunity for us."
The 148,074 net rentable square foot project will host 276 units and 321 beds. Also, the 28-story tower will include 11,000 square feet of amenities such as a fitness center, golf simulator, food service, bike storage, study areas and an outdoor terrace. Plus, there will be options for laundry services and housekeeping. The 168th Street subway station is steps away from the development.
Titanium Construction Services is leading the construction on the site, with an estimated completion date not listed.
S3 Capital has remained active throughout the residential sector in New York City. Its recent deals include originating a $300 million construction loan for a 731-unit project in Astoria and issuing $210 million in financing for a project in Sunset Park that will feature 497 units.
Schwartz said that he sees "significant" potential going forward for residential markets with limited supply, including Washington Heights.
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