NEW YORK, March 5, 2020 /PRNewswire/ -- 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 Corp., 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, a rooftop fitness and wellness level with sun terrace and sauna, and a program of seminars, lectures and think tanks. The project will also include a public-facing restaurant with a street-level grab and go concept and a courtyard bar. Additional amenities for residents include a dedicated kitchen as well as dining and laundry facilities for students. 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 is the first of its kind. We will deliver the best amenities and community-driven programming to students and members alike. We're looking forward to getting started and welcoming our newest neighbors," 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. "ACRES Capital is a key partner for our U.S. growth."
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 Corp. "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 partly in partnership with local universities, will accommodate 194 beds for students and will also contain a co-living portion of the premises with 127 beds 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 S. LaSalle Street in Chicago, Illinois.
Last month, The Collective also secured a $179 million group level financing package from Deutsche Bank and the London-based GCP Asset Backed Income Fund to fund its continued global expansion. The Collective will use the new financing package to acquire additional development sites, with a particular focus on the United Kingdom, Germany, Ireland and the United States, as it continues to expand globally. Following the agreement with Deutsche Bank, The Collective will have raised over $1.25 billion of investment, increasing its capital available for new acquisitions and delivery of its current development pipeline.
The Collective currently owns and operates the world's leading co-living business, with over 9,000 units operating or under development across the globe, and a pipeline of sites with the potential for 20,000 further units under consideration as it works towards a goal of having a 100,000 unit global portfolio over the next 5-10 years.
Renderings of 292 North 8th Street can be downloaded here.
SOURCE The Collective