The real estate investment firm, along with AEW Capital, has purchased 24-16 Queens Plaza South from Greystone Development. The seller had finished about 60% of the under-construction, 23-story apartment tower. Silverback will take over construction and convert the project to condos, breaking from Greystone’s plan to build rental apartments.
“About 20,000 rental apartments have been built in recent years in Long Island City,” said Josh Schuster, founder and managing principal of Silverback. “If you look at the existing condo supply, there’s less than 1,000 units on the market right now. We see the opportunity to deliver something contrarian.”
Silverback and AEW secured a $54 million loan from Benefit Street Partners Realty Trust to make the purchase and fund a portion of the remaining construction work. The company plans to finish the building and begin closing on unit sales by the end of the year. The building qualifies for the predecessor to the Affordable NY Program, which allows the property to avoid paying real estate taxes for 15 years, lowering maintenance charges for buyers. That program has since been changed to require builders to include affordable units in exchange for the tax break.