As detailed in Real Estate Weekly, a new development in the 2016 East New York rezoning area will transform a defunct gas station into permanently affordable housing, transitional housing for homeless families, and retail space. Approximately $215 million in financing was recently secured for Logan Fountain, which is being developed by The Hudson Companies and not-for-profit organizations the Jericho Project and HELP USA. Logan Fountain will follow a hybrid model that will include affordable housing, transitional housing, and a shelter together in one 13-story building, along with 7,677 sqft of ground-floor retail space. In total, Logan Fountain will create some form of housing for 343 families.
HSE served as deal counsel. Financing for the $97 million shelter was provided by a loan from Citi that is backed by a contract with the New York Department of Homeless Services. An additional $117 million for affordable housing financing was provided through a combination of NYS Housing Finance Agency tax-exempt bonds, a construction period Letter of Credit from Citi, an NYC HPD subsidy, a tax credit equity with syndicator Hudson Housing Capital and investor JP Morgan Chase, and funding from former NYC Council Member Rafael Espinal.