A long-delayed plan to convert a former East Village school into a college dorm looks set to go ahead.
Madison Realty Capital (MRC) announced it provided a $44 million first mortgage loan to “recapitalize a student housing developmentˮ at 350 East 10th Street in the East Village.
The project will address the growing demand for student housing which continues to be supply constrained, according to Josh Zegen, managing principal for MRC.
“There is a shortage of quality student housing options in Manhattan,” said Zegen. “Our financing of this project will help the borrower tap into that demand and turn a vacant building into a thriving housing option for students residing in New York City.
“This new development will provide a brand new student living facility with contemporary amenities, right in the heart of the East Village, one of the most artistic and diverse communities in the city.”
The 110,000 s/f landmarked property, located on a mid-block lot between Avenue B and Avenue C, was originally constructed in 1906 and operated as elementary school PS 64 until its closure in the mid 1970s
Developer Gregg Singer bought the building at auction in 1999. According to MRC, he has since been “pursuing the entitlement and redevelopment of the property.ˮ The financing provided by MRC will retire the existing indebtedness and provide capital for pre-development, said Zegen.
In a statement, the financier said the new five-story student housing property will have a various amenities, including a health center, fitness room, and collaborative outdoor spaces.
The property will offer a variety of suite layouts with accommodations for 535 students.