Developer LCOR has closed on a $94 million loan to complete a 28-story residential tower in New Rochelle, New York. The property is located at 247 North Avenue and is on track to debut as one of the largest buildings to incorporate a geothermal system for heating and cooling interior spaces.
When complete, the building will contain 307 rental units, 1,800 square feet of ground-floor commercial space, and parking for 257 vehicles. The residential units will range from studios up to two-bedroom spreads, with 31 affordable apartments reserved for households earning 80 percent area median income.
JLL Capital Markets arranged the financing on behalf of the developer. The substantial construction loan was arranged by Pacific Life.
“Advancing sustainability initiatives, like geothermal systems, are integral to our development approach,” said Anthony Tortora, senior vice president and principal of LCOR. “Upon completion, 247 North Avenue will use less energy and emit less carbon than buildings with more traditional HVAC systems.”
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.
The New Rochelle property will be LCOR’s second geothermal project, following 1515 Surf Avenue in Coney Island, Brooklyn, a 463-unit building expected to debut by the end of next year.
Construction at 247 North Avenue broke ground last year and is on track to debut in the second quarter of 2025.
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Any mortgage tax paid on this loan or is the mortgage tax just paid by homeowners?
I don’t know how I feel about the design. I like the original rendering better to be honest. *-* 🙁