CIT Real Estate Finance provided a $44.8 million senior secured term loan to a joint venture between The Treeline Companies, Mega Contracting and Glenmont Capital Management, LLC. The financing will be used to develop a new 7-story, 143,000-square-foot property that includes 114 rental units, 133 parking spaces, nearly 20,000 square feet of retail space, and 3,000 square feet of community space in Astoria, New York. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT.
The Treeline Companies is a real estate investment firm founded in 1985. Mega Contracting is a real estate development and property management company focused in the New York City metropolitan area, and Glenmont Capital Management is a Manhattan-based private equity fund manager focused on value-add and opportunistic real estate investments.
Michael Schor, Chief Investment Officer of The Treeline Companies, said, “This project is located in the Long Island City/Hunters Point sub-market of Queens, which has fast become an increasingly attractive market for renters seeking more affordable housing outside of Brooklyn and Manhattan. CIT’s knowledge and expertise of the local market was critical to this transaction, and we look forward to building this relationship.”
Hercules Argyriou, Vice President of Mega Contracting, said, “We’re excited to partner with Treeline on this project as we’ve seen a marked increase in development throughout Queens. The need for new housing is only expected to increase in the coming years. In addition to CIT’s lending expertise, we also want to thank Glenmont Capital, a New York-based real estate private equity fund manager, for providing us additional equity in this transaction.”
Lawrence A. Kestin, Managing Principal of Glenmont Capital Management, added, “This represents a highly strategic investment for Glenmont that will allow us to capitalize upon improving area fundamentals and increasing institutional ownership in the borough, while at the same time providing high quality, well-located market rate housing at a significant discount to both Manhattan and Brooklyn. We anticipate that this will mark the beginning of a long-standing relationship with Treeline, Mega Contracting and CIT.”
“We are pleased to lend to this joint venture,” said Matt Galligan, Group Head of CIT Real Estate Finance. “New housing is in increasing demand throughout New York, and Queens is fast becoming the next hot market. This project will be a great addition to the Astoria community, and we’re proud to have provided this financing to make it a reality.”
Meggan Walsh, Managing Director and Deputy Group Head, CIT Real Estate Finance, said, “This new property offers a great example of mixed use space by combining rental units with retail space in addition to community space. We are pleased to have arranged and provided this financing in support of the continued revitalization of the Queens housing market.”
Founded in 1908, CIT is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing.