JLL Arranges $250M Financing for Astoria Mixed-Income Development

JLL Arranges $250M Financing for Astoria Mixed-Income Development

Developers LMXD and Bedrock Real Estate Partners have secured substantial financing for a major residential project in Queens. The joint venture closed on a $250 million loan provided by New York Life Investment Management. The capital will fund the acquisition and construction of a 560-unit mixed-income building located at 35-10 Steinway Street in Astoria.

The transaction was arranged by JLL, a leading firm in the real estate services sector. The financing package enables the developers to move forward with a project that includes studio to three-bedroom apartments. According to the plans, 25% of the units will be designated as affordable housing for households earning 60% of the area median income. The development will also feature ground-floor retail space intended for a new P.C. Richard & Son store, maintaining the retailer’s footprint in the neighborhood.

The project site, which also includes the adjacent 35-18 Steinway Street, was purchased by the partners last year for $47.7 million. The property is situated within a zone that was rezoned in 2022 as part of the now-defunct Innovation QNS plan originally championed by Silverstein Properties. After the dissolution of the larger $2 billion proposal, which would have added 3,200 units, LMXD’s parent company, L+M Development Partners, and Bedrock continued with development efforts in the area.

Designed by Beyer Blinder Belle Architects & Planners, the building will utilize all-electric infrastructure. The development aims to deliver permanently affordable homes while contributing to the density of the Steinway Street corridor.

Market Context: The financing was arranged amidst a dynamic market for real estate services. JLL is currently trading at $361.18, reflecting an increase of 1.38% from the previous close of $356.26.

What to watch

• Construction commencement dates and estimated completion timelines for the 560 units.
• Future land use updates for the remaining parcels from the dissolved Innovation QNS rezoning.
• JLL’s upcoming quarterly results for insight into the commercial real estate financing environment.

Source: original release