Century Development Group has sealed $43.4 million of construction financing to build a mixed-income residential project in Flushing, Queens, Commercial Observer has learned.

BHI provided the loan on the developer’s planned 116-unit development at 135-01 35th Avenue in Flushing that will feature a mix of condos and affordable apartments. The 143,232 square-foot building slated for completion in fall 2027 will benefit from the 485x tax abatement program. 

Arrow Real Estate Advisors negotiated the debt with a team consisting of Morris Betesh, Omar Ferreira, Jacob Petrovic and Jonah Schultz. 

“Projects that can successfully deliver new housing in supply-constrained markets continue to stand out in today’s environment,” Betesh, managing partner at Arrow Real Estate Advisors, said in a statement. “With its strong location, experienced sponsorship and well-structured development program, this project is well positioned to contribute to the continued growth and evolution of the Flushing market.” 

Betesh noted that the deal involved a more complex development structure than traditional condo construction loans since the project is also incorporating an affordable housing component eligible for 485x benefits along with a Mandatory Inclusionary Housing requirement tied to the property’s zoning. He added that Arrow’s familiarity with the 485x program, New York City’s Department of Housing Preservation and Development process along with the Flushing condo market aided the transaction. 

“Century plans to continue our investment in growing the Flushing community.” George Xu, president of Century Development Group, said in a statement. “With a large Mandatory Inclusionary Housing component, this latest project not only provides much-needed affordable homes but also elevates the neighborhood by offering units of the highest caliber.” 

BHI did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.