ACRES Capital Originates $59.6M Loan to Complete Racanelli Construction & Development’s The Residences at Glen Harbor Condo Property in Glenwood Landing, NY
Construction & DevelopmentOctober 23, 2019
GLENWOOD LANDING, NY (October 23, 2019) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, Racanelli Construction & Development (“Racanelli”), a leader in New York construction and development for over 60 years and experienced CPA, financier and developer Ben Heitner jointly announced that ACRES originated a $59.6 million loan to complete the construction of Racanelli’s The Residences at Glen Harbor, a 48-unit, 165,000-square-foot residential condominium property located on Long Island, New York at 10 Shore Road in Glenwood Landing. The loan carries a term of 30 months and is sponsored by locally based, experienced developers Martin Racanelli, Nicholas Racanelli, Richard Racanelli and frequent Racanelli partner Ben Heitner.
“ACRES saw this loan as an appealing opportunity given the recent demand for similar, high-end residential condos on the North Shore of Long Island,” said ACRES Chief Executive Officer and President Mark Fogel. “Luxury condominiums on Long Island have been ideal targets for empty-nesters looking to downsize, and the limited near-term supply in Glenwood Landing combined with the sponsors’ local expertise and deep development acumen make this a quality product offering that is sure to see a high level of interest.”
Set to open in Fall 2020, The Residences at Glen Harbor is a luxury, waterfront condominium property overlooking Hempstead Bay, two miles from the Greenvale Long Island Railroad (LIRR) station and the town center of Roslyn. Residents will enjoy close proximity to the Long Island Expressway, as well as local shopping and dining options. The property will feature two and three bedroom homes ranging from 1,750 to 3,600 square feet, secure underground parking, full-time doorman, pool, pool house, indoor/outdoor entertainment areas, private on-site dog run, two fitness centers and 1,200 feet of boardwalk. Each waterfront condominium unit will include upscale finishes, Wolf & Sub-Zero appliances, washers and dryers, porcelain countertops, master bed/bath suites, free-standing tubs, custom wood cabinetry, hardwood floors and oversized terraces. These amenities are sure to attract empty-nesters who place a great deal of importance on convenience, elegance and value. Racanelli selected ACRES for this project due to its locality and proficiency in the Long Island market, as well as its reasonable deal terms and rigorous due diligence procedures.
Martin Racanelli stated, “We chose ACRES for this financing based not only on its attractive loan terms, but for its proven experience in the distinctive Long Island market. The Residences at Glen Harbor combines the Island’s waterfront heritage, luxury living and accessibility to create a unique offering for the North Shore. We are thrilled to bring our construction and development expertise to a community of people we’ve long known and loved, and our relationship with the ACRES team has proven to add value to each facet of the process.”
Multifamily development in the North Shore submarket has been limited as of late because of high barriers to entry, while sales prices in the region have maintained year-over-year increases due to supply constraints. This has made viable developments ripe for investment, as the need for high-end multifamily product remains tangible in an affluent Long Island market that has seen employment rate upticks since 2009.
Racanelli will serve as the general contractor for the Glen Harbor project, and the sponsors have engaged architect Devereaux & Associates as well as interior design firm Calder Design Group to refine the units and complete plans. Racanelli partnered, once again, on the development and financing of the Glen Harbor project with CPA Ben Heitner. Andrew Milbank of Berko & Associates officiated the transaction with the support of Stephen and Barry Kiront of Craft Capital Management, LLC.
Racanelli is known for projects including the Hampton Boat Houses/Hampton Bays, Watchcase/Sag Harbor, Grey Barn Apartments/Amityville and numerous hotels throughout the Northeast including Hilton and Hyatt Hotels.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of June 30, 2019, ACRES has closed over $1.25 billion of transactions.
About Racanelli Construction Company, Inc.
With roots dating back five decades, Racanelli Construction Company is a family business with a long legacy of commercial/industrial real estate building and development. The company serves diverse clientele as construction manager, general contractor or complete design/build resource. The company’s services are applied in the construction of corporate/industrial, healthcare, retail, hospitality/restaurant, educational, residential, religious, storage and pre-engineered buildings. Its highly qualified team of professionals and application of sound business processes with state-of-the-art technologies combine to facilitate high quality, on-time and on-budget projects. Racanelli Construction Company’s long history and impeccable reputation as a high-quality builder/developer has earned the company a broad bonding capacity as well as AAA Insurance coverage. Racanelli maintains excellent working relationships with local municipalities, business and civic associations, and elected officials. These relationships accrue considerable benefits to Racanelli’s clients when seeking financing/bonding, zoning approvals and support from the local community. Racanelli Construction Company executives are active members of the local community, serving on nonprofit organizations’ boards and participating in various philanthropic activities. For more information, visit: www.racanelliconstruction.com
About Ben Heitner
Ben Heitner is a Melville NY-based CPA, with over 25 years-experience developing and operating fast food restaurants in Nassau and Suffolk counties as well as over a dozen full-service restaurants in Manhattan. Other projects include industrial, retail, multi-family and self-storage facilities in the metro area, many of which he partnered with Racanelli Construction. His contribution to these projects included site selection, entitlement processes, deal structuring and financing.