NEW YORK, June 22, 2020 /PRNewswire/ -- Shorewood Real Estate Group announced today that in partnership with Bridge Investment Group, the firms closed on an $88 million loan to finance the construction of 1 Archer Avenue Apartments in Jamaica, Queens. The construction facility was provided by East West Bank and a syndicate of lenders to construct the first development financed with Opportunity Zone Capital from Bridge and Shorewood.
Shorewood's Opportunity Zone Fund was created shortly after the 2017 tax reform created Opportunity Zones, tracts of land across the United States that meet certain federal criteria to be considered "distressed communities." Investment in Opportunity Zones is encouraged—and rewarded with significant tax benefits. The intent was to incentivize investment in areas in need of revitalization.
The Archer Avenue site is within a Qualified Opportunity Zone. The full site, located at 160-05 Archer Avenue, will be a 320,000 square foot mixed-use development that will include a 23-story building with ground floor retail, below grade parking, and 315 residential units. Under the Affordable Housing New York Program and in adherence to the Inclusionary Housing Program, 30 percent of the units will be reserved for affordable housing. Anticipated rents for those units will be well below market value. According to Shorewood CEO S. Lawrence Davis, the affordability component was a critical consideration to the overall project.
"We are committed to quality development that serves our investors, and also the communities in which we build," said Davis. "Jamaica, Queens has a rich history and unique character and our project is being developed to enhance the neighborhood."
According to Davis, Opportunity Zones were designed to bring needed capital into communities just like Jamaica.
About Shorewood Real Estate Group, LLC
Shorewood Real Estate Group LLC is a multi-strategy real estate investment platform that specializes in the acquisition, financing and development of institutional quality assets in major gateway markets. Founded in 2009, Shorewood has a cumulative project market value in excess of $900 million. For more information, visit https://shorewoodgrp.com/.
About Bridge Investment Group
Bridge Investment Group is a privately-held real estate investment management firm with $20.1+ billion in assets under management. Bridge combines its 3,600-person, nationwide operating platform with specialized teams of investment professionals focused on select US real estate verticals, which Bridge believes offer above-market opportunity: multifamily, office, seniors housing, workforce & affordable housing, opportunity zones, and debt strategies.
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SOURCE Shorewood Real Estate Group