Moritz of Arker closes $24.4m in financing for 83-unit Hewitt House

The Arker Cos. has finalized financing for the 83-unit Hewitt House Apartments at 886 Westchester Ave.in the Longwood neighborhood. The $24.4 million, 75,300 s/f development will include 11,500 s/f of ground-floor retail. "Housing affordability is one of the most pressing challenges facing N.Y.C. today," said Daniel Moritz, a principal of The Arker Companies, who negotiated the deal. The residential units will be reserved for households earning up to 60% of annual median income for the city. 17 units will be set aside for formerly homeless families and individuals. Construction is expected to commence in December and be complete in the fall of 2010. The N.Y.C. Housing Development Corp. (HDC) is providing $11 million in tax-exempt bonds and $4.565 million in subordinate financing. The development is also receiving $7.4 million in tax credit equity from Wachovia Securities. Freddie Mac, through MMA Financial, is providing credit enhancement for a $4.1 million permanent mortgage. Bank of America is participating with a construction letter of credit in the amount of $11.1 million. Bank of America is also providing a $2.16 million loan to finance the project's retail portion. Northeast Brooklyn Housing Development Corp. serves as non-profit sponsor for the Hewitt House Apartments.