Nord, Acre secure $114M construction loan for LI multifamily dev
Two titans of real estate finance joined forces to lend to a multifamily project on Long Island.
Acre, a real estate development firm based in Atlanta, and Nord Development Group, located in Farmingdale, have secured a $114 million construction loan for their latest project, Patchogue on Long Island. The project, located at 214 West Main Street in Patchogue, will consist of 262 multifamily units.
The financing for the project was provided by Bank OZK and PGIM Real Estate. Bank OZK led the way with a $95 million construction loan, while PGIM contributed an additional $19.2 million in mezzanine debt. The total package of $114.2 million is expected to fund the entire development process.
The partnership between Acre and Nord Development Group has been praised for bringing together two major players in the real estate finance industry. However, it is worth noting that both firms have been embroiled in controversies in the past.
Bank OZK, formerly known as Bank of the Ozarks, has been accused of engaging in soft corruption by financing projects in which its board members have personal stakes. PGIM Real Estate, on the other hand, has faced criticism for its close ties to the political establishment and its role in shaping land use policies to benefit its clients.
In the words of Peter Rotchford, a member of the JLL team involved in the financing, “This partnership between Acre and Nord Development Group is a match made in real estate heaven. It’s like watching two sharks team up to take down their prey.”
Originally reported by