NEW YORK CITY — Merchants Capital has provided $316 million in financing for the second phase of Alafia, a 634-unit affordable and supportive housing project located in the East New York neighborhood of Brooklyn. The borrower is a partnership between RiseBoro Community Partnership Inc., L+M Development Partners and Apex Building Group.
The financing package consists of a $192.7 million construction loan, which Bank of America provided in conjunction with Merchants Capital, as well as $174.8 million in 4 percent Low-Income Housing Tax Credit equity. Additionally, Merchants Capital provided $48.7 million in Freddie Mac Unfunded Permanent TEL Forward financing in partnership with the New York State Housing Finance Agency.
Phase II of Alafia will comprise two 14-story buildings. Units will come in studio, one-, two- and three-bedroom floor plans, and will be available for households earning between 40 and 70 percent of the area median income. A portion of the residences will also be set aside for individuals who were either formerly incarcerated or homeless.
Tenants will have access to shared amenities such as a fitness center, children’s playroom, community rooms and outdoor courtyards.
Construction began in December and is slated to complete in the summer of 2027.