Co-living company, The Collective, has secured $75 million in construction financing for its latest development at 292 North 8th Street in Williamsburg.
Terms of the financing, provided by ACRES Capital Corp., were not disclosed.
North 8th is an 11-story student housing and short / medium stay co-living development scheduled for completion in 2022.
It will have shared amenities and programming for “a unique intergenerational community of members.”
Members will have access to a student lounge and classroom spaces, a rooftop fitness and wellness level with sun terrace and sauna, and a program of seminars, lectures and think tanks.
The project will also include a public-facing restaurant with a street-level grab and go concept and a courtyard bar.
Additional amenities for residents include a dedicated kitchen as well as dining and laundry facilities for students. In The Collective’s signature style, the general public will also be welcome to take advantage of both the space and its programs.
“North 8th is the first of its kind. We will deliver the best amenities and community-driven programming to students and members alike. We’re looking forward to getting started and welcoming our newest neighbors,” said Simon Koster, The Collective’s Head of U.S. Development. “ACRES Capital is a key partner for our U.S. growth.”
“For our firm, this is an opportunity to invest with an inspirational client on what will be a transformative project,” said Mark Fogel, President & CEO of ACRES Capital Corp.
“We believe that co-living is a future-forward alternative to housing, and given these factors, it was a very attractive proposition for us as lenders.”
North 8th, which is partly in partnership with local universities, will accommodate 194 beds for students and will also contain a co-living portion of the premises with 127 beds geared for nightly and monthly stays.
To date, The Collective has raised over $1 billion to fund its growth. In November of last year, it opened The Collective Paper Factory, its first U.S. location in Long Island City, Queens, marking the global debut of the company’s short-stay model.
North 8th will open alongside The Collective’s two previously announced Brooklyn projects, 555 Broadway and 1215 Fulton Street, in 2022. Also in development by The Collective are 2825 NW Second Avenue in Miami, Florida’s Wynwood District and 633 S. LaSalle Street in Chicago, Illinois.
Last month, The Collective also secured a $179 million group level financing package from Deutsche Bank and the London-based GCP Asset Backed Income Fund to fund its continued global expansion.
The Collective will use the new financing package to acquire additional development sites, with a particular focus on the United Kingdom, Germany, Ireland and the United States, as it continues to expand globally.