A rendering of a 53-unit residential building at 653-655 Mace Ave. in the Bronx, New York — Courtesy: Progress Capital
By Joshua Burd
The developer of a 53-unit, mixed-income residential project in the Bronx has secured a $16 million construction loan, in a transaction arranged by Progress Capital.
The borrower, Abraham Wieder of Supreme Equities, first acquired the site at 653-655 Mace Ave. in 2018, according to the Tinton Falls-based mortgage broker. It’s now moving ahead with plans for a project that will also include 16,000 square feet of commercial space.
ACRES Capital provided the nonrecourse financing at a loan-to-cost rate of nearly 80 percent, with carve outs and a competitive floating rate over Libor.
“I want to thank all parties involved, especially the underwriters at ACRES Capital, who helped us get this across the finish line,” said Abe Mann, managing director at Progress Capital. “We had the loan fully approved pre-COVID-19 and we thank ACRES for holding the same structure, rate and terms in place. Although the pandemic caused many challenges, including a significant delay in receiving (new building) permits, everyone did an excellent job overcoming these obstacles to get the loan closed.”
In a news release, Progress said 30 percent of the units will qualify as affordable housing. The site is in the Allerton section of the Bronx.