Project Finance and Development Report: 355 Exterior Street, Mott Haven

Project Overview

A significant urban development project is underway at 355 Exterior Street in the Mott Haven neighborhood of the Bronx, New York. The project involves the ground-up construction of a two-tower multifamily residential complex. This development is poised to contribute substantially to the area’s housing supply and local infrastructure, aligning with several key United Nations Sustainable Development Goals (SDGs).

• Total Units: 755 rental residences
• Unit Mix: Studios, 1-bedroom, and 2-bedroom apartments
• Total Area: 515,000 square feet
• Structure: Two interconnected towers of 40 and 26 stories
• Projected Completion: June 2026

The development includes 11,500 square feet of ground-floor retail space and 194 parking spaces, creating a mixed-use environment that fosters community and local economic activity.

Financial Details

SCALE Lending, the debt financing division of Slate Property Group, has provided a $305 million construction loan to the developer, the Beitel Group. This significant investment underscores confidence in the project’s viability and its potential for positive community impact.

1. Loan Amount: $305 million
2. Loan Term: 18-month whole-term loan with two six-month extension options
3. Arranged By: Landstone Capital Group
4. Developer: The Beitel Group
5. General Contractor: Prestige Construction NY

This financing facilitates large-scale construction, directly contributing to SDG 8: Decent Work and Economic Growth by creating numerous construction jobs and stimulating the local economy.

Contribution to Sustainable Development Goals (SDGs)

The 355 Exterior Street project is a prime example of urban development that actively supports the achievement of the Sustainable Development Goals.

SDG 11: Sustainable Cities and Communities

The project’s design and location are central to advancing urban sustainability.

• Affordable and Accessible Housing (Target 11.1): By adding 755 rental units to the housing stock and being vested in the 421a program, the project addresses the critical need for housing and affordability in New York City.
• Access to Sustainable Transport (Target 11.2): The property is located within walking distance of the 149th Street Grand Concourse subway station (2, 4, and 5 trains), promoting the use of public transit and reducing carbon emissions associated with private vehicles.
• Inclusive and Sustainable Urbanization (Target 11.3): As a high-density, mixed-use development on a revitalized waterfront site, the project exemplifies efficient land use and contributes to a more compact and sustainable urban form.
• Access to Public and Green Spaces (Target 11.7): Residents will have access to on-site amenities, including a large outdoor terrace, and are located near the newly developed Waterfront and Bankside Park, enhancing community well-being.

Additional SDG Contributions

• SDG 8: Decent Work and Economic Growth: The $305 million investment and subsequent construction and operation phases generate significant local employment, fostering economic growth in the Mott Haven submarket.
• SDG 9: Industry, Innovation, and Infrastructure: The construction of modern, resilient residential towers represents a significant upgrade to the area’s infrastructure, incorporating contemporary amenities like co-working spaces to support new ways of living and working.
• SDG 10: Reduced Inequalities: By developing a premier residential property in the Bronx and including components aimed at affordability through the 421a program, the project helps ensure a more equitable distribution of high-quality housing and investment across New York City’s boroughs.
• SDG 17: Partnerships for the Goals: The successful financing and execution of this project rely on a robust partnership between the developer (Beitel Group), the lender (SCALE Lending), the contractor (Prestige Construction), and financial arrangers (Landstone Capital Group), demonstrating an effective model for achieving development objectives.

Project Stakeholders and Partnerships

The collaboration between experienced local entities is critical to the project’s success, reflecting the principles of SDG 17. The primary stakeholders include:

• Developer: The Beitel Group, an experienced developer with multiple assets in the Mott Haven market.
• Lender: SCALE Lending (Slate Property Group), a direct lender with a strong track record in financing major urban developments.
• General Contractor: Prestige Construction NY, a partner on previous successful projects with the Beitel Group in the same submarket.

This established team has a proven history of successful project delivery in Mott Haven, including developments at 261 and 315 Grand Concourse and 120 East 144th Street.

SDGs Addressed in the Article

• SDG 11: Sustainable Cities and Communities

  The article’s core focus is on a large-scale urban residential development in the Mott Haven neighborhood of the Bronx. It directly relates to SDG 11 by discussing the construction of new housing, the development of urban infrastructure, and the revitalization of a specific city submarket. The project aims to add 755 rental units, addressing the need for housing in New York City. It also mentions proximity to public transport and public parks, which are key components of sustainable urban living.

• SDG 9: Industry, Innovation and Infrastructure

  This goal is relevant as the article details the “ground-up construction” of significant new infrastructure. This includes two residential towers, 194 parking spaces, and 11,500 square feet of retail space. The project involves demolishing existing buildings and developing modern, “premier” residential properties, which represents an upgrade to the area’s infrastructure and supports economic development and human well-being.

• SDG 8: Decent Work and Economic Growth

  The project is a major economic undertaking, highlighted by the “$305 million construction loan.” This investment stimulates local economic growth in the Mott Haven submarket, which has seen “tremendous growth over the last five years.” The construction phase, managed by Prestige Construction NY, creates jobs. Furthermore, the inclusion of 11,500 square feet of retail space will support future commercial activity and employment opportunities, contributing to the area’s economic vitality.

Specific Targets and Indicators

Identified Targets

1. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.

   The project directly addresses this target by constructing “755 rental units” to increase the housing supply in a major city. The article mentions the project is “vested into the 421a program,” which is a New York City program historically linked to the development of affordable housing alongside market-rate units, thus contributing to housing access.

2. Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.

   The development of a 515,000 square foot project that integrates residential units, parking, retail space, and resident amenities in a growing urban submarket is a clear example of urbanization and human settlement planning in action.

3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being…

   The construction of two new residential towers, described as the “most premier residential property” in the area, along with associated parking and retail space, directly contributes to the development of new, quality infrastructure. Its location near a subway station enhances its reliability and connectivity, supporting the well-being of future residents.

4. Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.

   While not providing national GDP figures, the article points to significant local economic activity. The $305 million loan and the lender’s “$1.5 billion in closings over the past year” are substantial financial inputs that fuel economic growth in the construction and real estate sectors of New York City.

Identified Indicators

1. Indicator for Target 11.1: Proportion of urban population living in slums, informal settlements or inadequate housing.

   The article provides a direct measure to counter this: the creation of 755 new rental units. This number serves as a quantifiable contribution to the city’s housing stock. The mention of the 421a program also acts as a policy-related indicator for addressing housing needs.

2. Indicator for Target 9.1: Proportion of the rural population who live within 2 km of an all-season road. (Urban equivalent implied)

   The article implies an urban equivalent of this accessibility indicator by stating the property is a “short walk from the 149th Street Gand Concourse subway station,” which provides access to the 2, 4, and 5 trains. This indicates the development of infrastructure that is well-connected to public transport networks.

3. Indicator for Target 8.1: Annual growth rate of real GDP per capita.

   The article provides financial figures that serve as proxies for economic activity and investment. The $305 million construction loan for this single project and the $1.5 billion in closings by the lender over the past year are direct monetary indicators of investment driving economic growth.

SDGs, Targets, and Indicators Analysis

Source: citybiz.co