Arrow Real Estate Advisors arranges financing for 497 residential rental units and 100,000+ square feet of retail space within a 28-story mixed use building
S3 Capital, one of the most active private real estate lenders on the East Coast, is pleased to announce the origination of a $210 million construction loan for a 28-story mixed use rental development with 497 residential units and over 100,000 square feet of retail space in Sunset Park, Brooklyn. Morris Betesh, Founder and Managing Partner, Alex Bailkin, Senior Vice President, Matt O’Hanlon, Senior Associate, and Israel Mermelstein, Vice President at Arrow Real Estate Advisors brokered the deal on behalf of the sponsor.
After reaching $6 billion in total originations across over 700 loans since the firm’s inception last week, S3 Capital continues to grow its assets under management in a significant way while financing unique projects that benefit communities around the country. The S3 team anticipates reaching approximately $1 billion in originations in Q1 2025 alone.
S3 Capital is delighted to partner with the project’s sponsor, Watermark Capital, who has been a pioneer in Brooklyn’s luxury rental space and holds years of experience developing residential projects in the area. Watermark Capital is teaming up with Prestige Construction, who will serve as the General Contractor, to bring the project to life.
Schwartz, Co-Founder and Partner at S3 Capital noted, “We are thrilled to collaborate with Watermark Capital on this exciting project. The Sunset Park housing market is significantly under-supplied, and this development will bring a substantial amount of in-demand, transit-oriented housing units to the community.”
Morris Betesh, Founder and Managing Partner of Arrow Real Estate Advisors shared, “This financing highlights Arrow’s ability to provide significant market knowledge and expertise to identify strategic opportunities for our clients. Our team worked closely with Watermark Capital to understand their specific needs and provide the best opportunity for long-term value.”
The development will include a top-of-the-line amenity package including a fitness center, rooftop terrace, bike storage, yoga room, sauna, screening room, and coworking spaces. The development sits directly above a subway station and is located just a short commute from Manhattan, which will allow residents to easily access many different parts of the greater-NYC area.
Managing Directors of Origination at S3, Shawn Safdie and Steven Jemal, helped bring the deal to fruition. Steven Jemal noted, “This loan underscores our confidence in the Brooklyn sub-market and the unique opportunity to deliver housing to the New York City boroughs that need it most.” Safdie added, “Our team has led the market in providing multifamily financing in Brooklyn for over 10 years, and we continue to be the partner of choice for best-in-class developers capitalizing on the continued growth of the market.”
About S3 Capital
S3 Capital is a national real estate lender specializing in construction and bridge loans for multifamily development. With experienced and dedicated teams focused on origination, underwriting, and construction management, they take an active and hands-on approach to lending that mitigates risk both before and during the life of the loan. Since launching its credit business in 2013, S3 has originated over 700 loans totaling more than $6 billion. With a focus on multifamily in and around Tier 1 markets, S3 seeks to achieve equity-like returns for investors that are both resilient and current income-oriented. S3 Capital is wholly owned by Spruce Capital, founded in 2007, which also owns Spruce Properties, focused on managing approximately 5000 multifamily units primarily based in the Midwest.
About Arrow Real Estate Advisors
Arrow Real Estate Advisors, founded in 2024 by industry veteran Morris Betesh, is a leading real estate finance advisory firm that partners with the nation’s top developers. The firm delivers comprehensive, customized financial solutions, specializing in permanent financing, construction financing, debt structuring, and raising joint venture equity. Operating across all asset classes—including luxury residential, commercial office, hotels, retail, and industrial warehouses—Arrow Real Estate Advisors is dedicated to exceeding client expectations and achieving exceptional results. With a dynamic team of some of the most driven, innovative, and sharpest professionals in the industry, the firm consistently provides creative solutions and leverages its expansive network of financial partners. Headquartered in New York City, Arrow Real Estate Advisors operates nationwide, setting new standards in real estate finance. For more information about Arrow Real Estate Advisors and its services, please visit https://www.arrowrea.com.
