Scale Lending, the debt arm of Slate Property Group, has provided construction financing to Beitel Group’s 450-unit multifamily project in Mott Haven, the Bronx.
The development at 120 East 144th Street will have approximately 300,000 square feet of residential area; it received $150 million for construction, according to a statement from Scale.
The loan was arranged by Leah Paskus of Landstone Capital Group. Beitel bought the development site in 2022 for $42 million.
“The need for multifamily in New York City’s residential neighborhoods continues to grow,” said Martin Nussbaum, co-founder and principal at Slate Property Group, “and new housing projects like 120 East 144th Street are critical in helping meet that demand.”
Building amenities will include an outdoor courtyard, garden and rooftop lounge, a fitness center and yoga studio, and coworking space. The project will have 149 underground parking spaces.
Beitel’s sizable project will qualify for the 421a tax abatement, provided construction is complete by the June 2026 deadline. The project was among the largest submitted for city approval in 2022, although the development will hold 20 fewer apartments than previously planned, according to recent filings with the Department of Buildings.
The 421a tax break expired in June of 2023 for projects that did not already have footings in the ground. Its renewal is a major political football in Albany, where state legislators are trying to reconcile demands for price controls with necessary financial subsidies for more housing production.
Developers rushed to secure financing from private lenders before the 421a construction deadline, as traditional lenders, including regional banks, pulled back.
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The company closed almost $600 million in loans in the last three months, including $140 million for Clipper Equity to build a 7-story, 354-unit multifamily project at 2366 Bedford Avenue in Flatbush, Brooklyn; a $46 million bridge loan for Arris Grand, a newly completed, 113-unit rental building in Brooklyn’s Clinton Hill neighborhood; and two cross-collateralized loans totaling $243 million for two multifamily buildings in Jersey City’s Journal Square neighborhood.
In the twilight of the 421a tax break, developer Ben Beitel’s eponymous firm has been active in the Bronx. In 2022, the company bought a pair of development sites at 315 Grand Concourse and 270 Walton Avenue in Mott Haven, although no construction financing has been recorded publicly for the contiguous sites.
CORRECTION: A prior version of this article incorrectly reported the loan amount to be $120 million. The correct amount is $150 million.