Arrow Real Estate Advisors arranges $50 million construction loan for 198-unit multifamily dev.
Brooklyn, NY Arrow Real Estate Advisors arranged a $50 million construction loan on behalf of Midwood Group for the ground-up development of two contiguous multifamily buildings at 937 and 951 East 108th St.
The financing was arranged by Israel Mermelstein, Morris Betesh, and Louis Halperin of Arrow Real Estate Advisors on behalf of Midwood Group, led by Abraham Posner. The loan was provided by Ponce Bank and closed on July 13, 2026.
The development will transform the site into two newly constructed seven-story residential buildings totaling 143,083 gross s/f. Upon completion, the project will deliver 198 residential units, 99 units in each building, along with two ground-floor commercial spaces, 71 parking spaces, and a collection of resident amenities, including a fitness center and bicycle storage.
Following its acquisition of the property in August 2025, Midwood Group secured all required approvals and advanced construction to the point that the project was topped out prior to the financing closing, demonstrating the sponsor’s ability to execute and materially reducing the remaining construction exposure.
Construction is expected to be completed during the first quarter of 2027. Once complete, the project will introduce nearly 200 new apartments to the neighborhood.
Arrow Real Estate Advisors worked closely with both the sponsor and Ponce Bank to structure financing that reflected the strength of the sponsorship, the advanced stage of the development process, and the long-term viability of the project. By emphasizing the sponsor’s experience, completed approvals, and the benefits of the 485-x program, the team successfully secured financing that supports the project’s construction timeline and long-term business plan.
“Deals like this come together when the right sponsor, project, and capital partner are aligned,” said Mermelstein, senior director at Arrow Real Estate Advisors. “Ponce Bank understood the specific dynamics of the transaction and recognized the strength, ability, and experience of the sponsorship, giving all parties confidence in a successful execution.”