David Grunfeld's development company GW Infinity secured $45 million in construction financing from S3 Capital to build a 99-unit apartment complex in Williamsburg, Brooklyn on a church-affiliated property. The project includes an affordable housing component, though specific affordability percentages remain undisclosed.
The deal represents a leasehold construction loan, meaning Grunfeld develops the building on land the church retains ownership of rather than purchasing the site outright. This structure is common in religious institution development deals, where nonprofits maintain long-term ground control while developers finance and construct improvements above.
Williamsburg continues to attract multifamily investment despite market headwinds. The neighborhood, straddling Brooklyn and Queens, has seen rents stabilize after years of rapid growth. New construction here competes for renters against abundant supply nearby, particularly in Long Island City, which added thousands of apartments over the past decade.
The 99-unit size suggests a mid-rise building, likely 6 to 12 stories. Developers favor this scale in Williamsburg due to zoning constraints and community resistance to large towers. The affordable housing component likely reflects either city incentives or deed restrictions from the church partnership. Williamsburg's median rent now hovers around $3,200 for a one-bedroom, with affordable units typically priced between $1,500 and $2,400 depending on income qualification.
S3 Capital, the construction lender, specializes in bridge financing and transitional debt for urban multifamily projects. The firm structures loans to cover hard costs through project completion, typically 24 to 36 months for this building class. The $45 million ticket suggests either a modest per-unit hard cost around $450,000 or a project with land costs already factored in by the church partnership.
Church properties offer developers unique advantages. Tax-exempt nonprofits often carry long-held land with low carrying costs, allowing flexible economics. Ground leases preserve the institution's real estate while generating revenue. Churches in transit-rich neighborhoods like Williamsburg face pressure to monetize underutilized property, creating opportunities for developers willing to navigate nonprofit governance and potential community opposition.
For renters, the project adds supply to a market where vacancy remains tight below $2,500 per month. The affordable component provides homes for households earning 60 to 80 percent of area median income, roughly $52,000 to $70,000 annually for a family of three in New York City.
Grunfeld's development pipeline remains active in Brooklyn. The Williamsburg project joins other multifamily construction across the borough, though activity has slowed compared to 2021 and 2022 peaks. Higher interest rates and labor costs have compressed margins, making church partnerships attractive because they reduce land acquisition risk.
The project timeline typically runs 36 to 42 months from financing to occupancy. Expect demolition or renovation work to commence within six months of loan closing, with unit deliveries likely beginning in 2026 or 2027. Zoning compliance and community board approvals would have secured prior to financing, reducing execution risk for S3 Capital.
This deal underscores how developers mine institutional real estate for housing supply. As cities struggle with affordability, partnerships between secular developers and faith-based landowners provide a tested path to new construction without requiring major zoning changes or government subsidy.