Merchants Capital is providing $23.6 million in financing for the rehabilitation of a historic New York City multifamily development by West Side Federation for Senior and Supportive Housing (WSFSSH).
Three Arts Club will provide permanent and supportive housing for residents 62 and older upon its conversion. The property benefits from a Housing Assistance Payment contract, under which residents earning up to 50% of the area median income will pay 30% of their income toward rent. Twenty-five units will be reserved for formerly homeless individuals.
WSFSSH, a nonprofit affordable housing developer, manager, and service organization, will provide on-site supportive services.
To make the project possible, Merchants Capital announced securing an $18.4 million Freddie Mac unfunded forward permanent loan and a $7.9 million construction loan participation from Merchants Bank. Three Arts Club will also receive $11.4 million in historic tax credits.
“We’re grateful to Merchants Capital for recognizing that preservation, sustainability, and supportive housing can go hand in hand,” said Nicole Marrocco, director of real estate development at WSFSSH. “Three Arts Club will transform former SRO units into modern, energy-efficient studios for low-income older adults and formerly homeless New Yorkers, ensuring they can age in place with dignity.”
Officials noted that historic spaces will be maintained and include a dining room with a commercial kitchen, a library, a music room, and common lounge areas.
“Three Arts Club has a remarkable history, initially built in the 1920s as dormitory-style housing dedicated for aspiring women artists,” said Ben Levine, senior vice president of originations at Merchants Capital. “We are proud to support the next chapter in providing vital affordable housing to local senior citizens and formerly homeless individuals in need.”