THE COLLECTIVE OBTAINS $75 MILLION CONSTRUCTION FINANCING AT NEWEST LOCATION, 292 NORTH 8TH STREET, IN WILLIAMSBURG, BROOKLYN
mixed-use property
MARCH 04, 2020Construction to begin immediately on mixed-use property, purpose-built for students and short stays– slated to open in 2022
(NEW YORK, NY – March 4, 2020) – The Collective, the leading global co-living company based in New York, London and Berlin, today announced it has secured $75 million in construction financing for its latest co-living development, 292 North 8th Street (“North 8th”) in central Williamsburg, Brooklyn. Terms of the financing, provided by ACRES Capital, were not disclosed.
North 8th is an 11-story student housing and short / medium stay co-living development in Williamsburg. Once completed in 2022, North 8th will offer extensive shared amenities and dynamic programming to all in its unique intergenerational community of members. They will have access to a beautifully designed student lounge and classroom spaces, street-facing food and beverage options, an outdoor courtyard, a fitness and wellness level with sun terrace, and a program of seminars, lectures and think tanks. In The Collective’s signature style, the general public will also be welcome to take advantage of both the space and its programs
“North 8th, with its mix of extensive shared amenities and dynamic programming for a unique intergenerational community of members, is going to be a game changer, and we’re excited to build it,” said Simon Koster, The Collective’s Head of U.S. Development, who leads an interdisciplinary team of experienced real estate development, architecture and financing professionals in the delivery across The Collective’s growing U.S. pipeline of co-living projects. “We are pleased that ACRES Capital is supporting our vision.”
Koster’s wide ranging experience includes a decade at JDS Development Group, a real estate development, construction and acquisition firm known for its top-tier residential, hospitality and mixed-use projects in New York City and Miami. As a Principal at JDS, Koster oversaw the planning, design, coordination and construction management teams across all JDS projects.
“For our firm, this is an opportunity to invest with an inspirational client on what will be a transformative project,” said Mark Fogel, President & CEO of ACRES Capital. “We believe that co-living is a future-forward alternative to housing, and given these factors, it was a very attractive proposition for us as lenders.”
North 8th, which is in partnership with local universities, will accommodate 97 rooms for students with the remaining 127 studios geared for nightly and monthly stays. Ideally located between the Bedford Avenue L-train station and the Metropolitan Avenue G-train station in North Williamsburg, North 8th is in one of New York’s most dynamic neighborhoods. Furthermore, it is one stop away from Manhattan and connected to Long Island City and downtown Brooklyn via the nearby G-train.
The Collective’s growing, global network of co-living spaces offers thoughtfully designed efficiencies in the private living space to create a surplus of square footage for unique shared amenities and experiences. To date, the company has raised over $1 billion to fund its growth, bringing to life its vision of making co-living an option for people all over the world. In November of last year, it opened The Collective Paper Factory, The Collective’s first U.S. location in Long Island City, Queens, marking the global debut of the company’s short-stay model and the start of an explorative, collaborative cultural program dedicated to housing innovation and community-building in cities
North 8th will open alongside The Collective’s two previously announced Brooklyn projects, 555 Broadway and 1215 Fulton Street, in 2022. Also in development by The Collective are 2825 NW Second Avenue in Miami, Florida’s Wynwood District and 633 LaSalle in Chicago, Illinois. This year, the company announced an ambitious plan to launch 100,000 units by 2025, which will service increasingly nomadic global populations with quality, attainably priced and flexible living solutions across the United States, United Kingdom, and Germany, among other locations.
About The Collective
The Collective is a leading co-living pioneer building long and short stay communities across a growing, global network of cities. Its unique spaces combine thoughtfully designed private living solutions with communal and public amenities, to promote connection, growth and inspiration amongst members and benefit the surrounding neighborhood.
In the context of increasingly isolating urban environments, The Collective seeks to create a positive impact and foster human connection through dynamic cultural programs designed to bring people together.
Founded in London in 2010 by CEO Reza Merchant, The Collective has grown from offering small house shares to owning and operating the world’s largest co-living project, with over 9,000 units operating or under development across the U.K., U.S. and continental Europe. The 350+ strong team headquartered across New York, London and Berlin has raised nearly $1bn to fund its international growth, bringing to life its vision of making co-living an option for people all over the world.
In joint partnership with DTZ Investors, a specialist European real estate fund manager, The Collective launched COLIV, the world’s first institutional large-scale co-living fund, with the aim of raising up to £650 million ($840 million) in equity commitments to acquire or forward-fund between six and 10 co-living assets in London.
The Collective Old Oak in London opened in 2016 with 546 rooms, which has since operated at 97 per cent occupancy. In 2019 The Collective opened new flexible stay co-living projects: Canary Wharf in London, and Paper Factory in Long Island City, New York.
For more information visit www.thecollective.com
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 $100 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. ACRES has originated over $1.5 billion of loans since inception
