New Paltz Multi-Family

The offering is a senior construction facility of $31.9 million, sized at 75 percent and a mezz loan of $4.25 million for a $41.4 million total development cost, to fund the ground-up delivery of a 128-unit, Class A mixed-use multifamily community with 8,700 square feet of ground-floor retail in New Paltz, New York. The request is not a wager on a market's direction; it is a claim on a structural imbalance that already exists. New Paltz has absorbed roughly a quarter of population growth since 2020 against a housing stock that has scarcely moved, and the Project answers that scarcity with professionally managed, walk-and-bike-to-campus product the submarket demonstrably lacks.

For a lender, the compelling feature of this credit is the cushion beneath it. The loan funds to a basis of $323,730 per unit yet underwrites to a stabilized value near $62.5 million, or roughly $488,000 per unit; the facility therefore delevers from 75 percent of cost to approximately 50 percent of stabilized value as the asset seasons. Stabilized net operating income of $2.97 to $3.28 million supports a debt yield near 9.6 percent, a figure that clears conventional construction thresholds with room to spare. A fifteen-year PILOT further insulates cash flow by holding the tax burden below market across the critical lease-up and stabilization window.