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Ponce Bank provides $50M construction loan for Brooklyn apartment project
The 198-unit development at 937-951 East 108th Street closed on July 13 and is planned to start construction in early 2027, with tax abatements under New York State’s 485-x program for affordable units.
Midwood Group has secured $50 million in construction financing for a new multifamily project in Brooklyn, according to Commercial Observer. Ponce Bank provided the loan for the ground-up development of two contiguous apartment buildings at 937 East 108th Street and 951 East 108th Street in the Canarsie neighborhood.
The project will combine 198 units across 143,083 square feet, with 71 parking spaces. Commercial Observer reports the deal closed on July 13, and construction is slated to begin in early 2027.
Arrow Real Estate Advisors arranged the transaction, with a team led by Israel Mermelstein, Morris Betesh, and Louis Halperin. The project is set to receive tax abatements through New York State’s 485-x program because a portion of the apartments will be designated as affordable.
Ponce Bank President and CEO Carlos Naudon said in a statement that the development represents an important investment in Brooklyn and New York City’s growing housing supply. Arrow’s Mermelstein said the transaction came together with aligned sponsor, project, and capital partners, and that Ponce Bank recognized the sponsorship’s strength and experience.