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S3 Capital provides $45M construction loan for 99-unit Williamsburg apartments

The 17-story project at 277 North Eighth Street will set aside 20 percent of units as affordable under New York City’s 485-x program.

Reported · Written up by our desk · Residential

S3 Capital has provided a $45 million leasehold construction loan for a 17-story, 99-unit apartment development at 277 North Eighth Street in Williamsburg, Brooklyn, Commercial Observer reported.

The project will designate 20 percent of units as affordable under New York City’s 485-x tax incentive program, and it is planned to be built on church-controlled land via a long-term ground lease with the Roman Catholic Church of Our Lady of Mount Carmel.

Plans were filed in December 2025 to demolish a vacant two-story building at the site, and the financing structure is designed around the leasehold interest and ground-lease terms so the borrower can move forward without the capital commitment usually required to buy the underlying land.

S3 said Williamsburg has tight multifamily fundamentals, with vacancy rates around 2 percent and rents up roughly 6 percent year-over-year amid a limited pipeline of new supply, and the property is three blocks from the Bedford Avenue L train station.

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