NEW YORK CITY — Merchants Capital has funded $316 million in financing for the second phase of Alafia, a project in the East New York area of Brooklyn that will add 634 affordable and supportive housing units to the local supply. The borrower is a partnership between RiseBoro Community Partnership Inc., L+M Development Partners and Apex Building Group.
The financing package, which includes both construction and permanent debt as well as equity, comprises:
- $48.7 million in Freddie Mac Unfunded Permanent TEL Forward financing provided by Merchants Capital in partnership with the New York State Housing Finance Agency
- A $192.7 million construction loan provided by Bank of America in conjunction with Merchants Capital
- $174.8 million in 4 percent Low-Income Housing Tax Credit (LIHTC) equity closed by Merchants Capital in partnership with Bank of America
Phase II of Alafia will consist of two 14-story residential buildings that will house studio, one-, two- and three-bedroom apartments that will be restricted for households earning between 40 and 70 percent of the area median income. A portion of those residences will be specifically reserved for individuals who were either formerly incarcerated or homeless. Amenities will include a fitness center, children’s playroom, community rooms and outdoor courtyards. Phase II will also feature 22,000 square feet of community and retail space. Construction began in December and is expected to be complete in summer 2027.