A planned nine-story condo at 747 Flatbush Avenue just locked in a big chunk of cash, clearing one of the toughest hurdles for any ground-up project in New York City. The development has secured a $75 million construction loan, nudging the busy Flatbush block closer to yet another mid-rise addition.
According to Crain's New York Business, the financing closed on June 22 and is earmarked for construction and related site work for the condo at 747 Flatbush.
Project and developer
The sponsor on the deal is New Empire Corp., which has been steadily assembling sites and filing plans in Flatbush and across the city, as previously reported by The Real Deal. That earlier coverage shows New Empire chasing multiple condo plays along Flatbush and nearby commercial corridors, with this site part of a broader push into the neighborhood.
Who put up the money
The loan fits a familiar pattern in the current market, where private credit outfits and specialty lenders are often the ones stepping up for condo construction. Naftali Credit Partners has been a regular player in this space, providing construction and mezzanine financing for New Empire and comparable sponsors, according to Commercial Observer. These non-bank loans have helped developers fill funding gaps at a time when traditional banks are choosier about what they will back.
What it means for Flatbush
The financing at 747 Flatbush adds to a growing stack of development dollars flowing into the area. Clipper Equity recently landed a roughly $140 million construction loan for a sizable Flatbush project, and other builders have closed seven- and eight-figure construction deals nearby, according to PincusCo. Taken together, those transactions suggest lenders are betting that demand for new housing in outer-borough corridors will hold up even as other parts of the market reset.
Details on the unit mix, pricing and construction timeline for 747 Flatbush have not yet been made public. Hoodline will keep an eye on permit filings and sales documents as the condo moves from financing milestone to full-on construction.
