LCOR, a fully integrated real estate investment, development and management company, together with JLL Capital Markets, closed a $94 million construction loan for 247 North Ave. in downtown New Rochelle. The 28-story, ground-up development will be an all-electric property and one of the largest residential geothermal projects in New York.
“We are excited to contribute to the revitalization and growth of downtown New Rochelle,” said Anthony Tortora, senior vice president and principal of LCOR. “Advancing sustainability initiatives, like geothermal systems, are integral to our development approach. Upon completion, 247 North Ave. will use less energy and emit less carbon than buildings with more traditional HVAC systems.”
This will be LCOR’s second geothermal project, following 1515 Surf Ave. in Coney Island, Brooklyn, which will feature 463 residential units (30% affordable) and will be delivered in 1Q 2024.
247 North Avenue will feature 307 residential rental units,1,800 square feet of ground-floor commercial space and parking for 257 vehicles. The residential units will include studio, one- and two-bedrooms, with 31 affordable apartments available to residents earning 80% of the area median income.
Rather than using fossil fuel-fired equipment, the geothermal system will provide heat and cooling throughout the property via a series of geothermal wells located deep under the building. This unique approach reduces carbon emissions and dramatically lowers utility costs.
Construction of 247 North Ave. is underway and is expected to be completed in the second quarter of 2025.
The JLL Capital Markets Debt Advisory team representing the borrower was led by Bob Tonnessen and Steven Klein.
