Kennedy Funding Financial has closed a $2 million loan to LZBC Next Level Realty to fund the construction of an eight-unit, four-story walk-up building at 100 Scholes Street in Williamsburg.
Plans for the property include four two-bedroom, one-bathroom units and four one-bedroom, one-bathroom units. The development is located near community parks, restaurants, movie theaters, concert venues, and shopping. A waterfront park is scheduled to open in June on the neighborhood’s former Domino sugar factory site.
“Housing is in very high demand in New York City,” said Kevin Wolfer, CEO of Kennedy Funding Financial. “Building apartments in one of the hottest rental markets in the United States is a very smart use of this real estate.”
Average monthly rent for a two-bedroom apartment in Williamsburg is currently hovering around $3,200. According to Wolfer, Kennedy takes factors such as neighborhood popularity into account when evaluating loan applications.
“As a direct private lender, our process allows us to look beyond the application, so we can close a loan based on the merits of the deal itself or other extenuating factors most conventional lenders don’t examine,” Wolfer said. “Since these apartments will be located in a very popular neighborhood, funding a construction loan to build more housing was an easy decision for us to make.”