L+M, Merchants Capital sign $326.3M construction loan for dev site in East New York

L+M Development Partners and Merchants Capital through the entity Alafia 2 Owner LLC as borrower signed a new construction loan with lender NYS Housing Finance Agency through the entity New York State Housing Finance Agency valued at $326.3 million for three adjacent properties including two properties on Fountain Avenue and one on Erskine Street in East New York, Brooklyn.
On the tax block, there were eight new building construction projects totaling 1,806,027 square feet. The largest is a 437-unit, 386,362 square-foot residential (R-2) building submitted by L+M Development Partners and filed by David Dishy with plans filed July 16, 2021 and permitted September 26, 2022. The second largest is a 425-unit, 380,472 square-foot residential (R-2) building submitted by L+M Development Partners and filed by Spencer Orkus with plans filed October 18, 2023 and permitted January 6, 2025.

The deal closed on December 20, 2024 and was recorded on January 29, 2025.
The signatory for L+M Development Partners and Merchants Capital was Spencer Orkus. The signatory for NYS Housing Finance Agency was Russell Hubley. This is for two vacant development parcels and a connecting parcel. Merchants Capital is identified as “Beneficial owner’s investor member.” Document pdf p.6

The block

On the tax block of N/A Fountain Avenue, PincusCo has identified the owners of two of the four commercial properties representing 503,849 square feet of the 503,849 square feet. The two identified owners are Apex Building Group and Arker Companies.
On the tax block, there were eight new building construction projects totaling 1,806,027 square feet. The largest is a 437-unit, 386,362 square-foot residential (R-2) building submitted by L+M Development Partners and filed by David Dishy with plans filed July 16, 2021 and permitted September 26, 2022. The second largest is a 425-unit, 380,472 square-foot residential (R-2) building submitted by L+M Development Partners and filed by Spencer Orkus with plans filed October 18, 2023 and permitted January 6, 2025.

The majority, or 88 percent of the 503,849 square feet of built space are specialty buildings, with elevator buildings next occupying 12 percent of the space.

The borrower

The PincusCo database currently indicates that L+M Development Partners owned at least 238 commercial properties with 23,300 residential units in New York City with 21,598,329 square feet and a city-determined market value of $2.2 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.4 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 83 percent of the 21,598,329 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Manhattan next at 40 percent of the space.

Direct link to Acris document. link