Construction to begin immediately on mixed-use property, purpose-built for students and co-living stays—slated to open in 2022
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 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.
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 more than $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 beds, 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 Corp.
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.
For more information, visit www.acrescap.com/
