Arrow Real Estate Advisors arranges $105 million lease-up refinance for 184-unit The Pecora

Queens, NY Arrow Real Estate Advisors arranged a $105 million lease-up refinance on behalf of Watermark Capital Group for The Pecora, a newly delivered Class A multifamily property located at 41-10 Crescent St. in Long Island City. The financing was secured against the leasehold interest in the 210,000 s/f,184-unit multifamily property, which includes both free-market and affordable housing.

The financing was arranged by Arrow’s Morris Betesh, Israel Mermelstein, Omar Ferreira, Jacob Petrovic, and Jonah Schultz and provided by Walker & Dunlop Investment Partners. The loan refinances a 210,000 s/f, 184-unit multifamily property consisting of both free-market and affordable housing in one of New York City’s strongest rental markets. Since commencing leasing, The Pecora has experienced strong absorption as the newly delivered, pre-TCO property continues to lease up.

, reflecting continued demand for high-quality residential product in Long Island City.

Since commencing leasing, The Pecora has experienced strong absorption, reflecting continued demand for newly delivered, high-quality residential product in Long Island City. The property benefits from a 421-a tax abatement, creating meaningful long-term tax savings while enhancing the asset’s operating performance. Watermark Capital Group’s business plan is focused on continuing to build on leasing momentum and further stabilize the property as occupancy continues to increase.

The transaction required a financing partner capable of understanding the property’s leasehold structure, mixed-income composition, and lease-up profile. Given the combination of market-rate and affordable units, the financing needed to recognize both the long-term value created by the 421-a tax abatement and the stability provided by the affordable housing component. Walker & Dunlop Investment Partners recognized the strength of the sponsorship, the quality of the asset, and the property’s long-term cash flow profile, ultimately providing a financing solution tailored to support the property’s continued stabilization.

“We are pleased to have arranged this financing on behalf of Watermark Capital Group for The Pecora,” said Mermelstein. “Long Island City continues to be one of the strongest multifamily markets in New York City, and this property is exceptionally well positioned to capitalize on that demand. Walker & Dunlop Investment Partners understood both the long-term value of the 421-a tax abatement and the strength of the sponsor’s business plan, allowing us to structure a financing solution that provides the flexibility needed during the lease-up and stabilization process.”

Arrow worked closely with both Watermark Capital Group and Walker & Dunlop Investment Partners throughout the financing process to structure a lease-up refinance that replaced the property’s existing construction loan while providing additional runway to execute the sponsor’s stabilization strategy. The refinancing positions ownership to continue leasing the property and maximize long-term value as The Pecora approaches full stabilization.