The financial services provider Merchants Capital announced it has secured a $60.5 million balance sheet acquisition loan from Merchants Bank to finance the real estate developer Tredway’s purchase and preservation of Ocean Park Apartments, an affordable housing development with 602 units at 1-25 Beach 17th St. in Far Rockaway.
This loan will help stabilize and extend the affordability of the units at this development. As a result, the financing will prevent substantial imminent rent increases and cover the costs for critical repairs that are needed.
“The structural integrity of Ocean Park Apartments and affordability of more than 600 multifamily units and are being supported and well-maintained due to the collaboration and commitment of Tredway and partners involved in this deal,” Merchants Capital Senior Vice President of Originations Michael Milazzo said. “We are proud to contribute to this community-enhancing effort.”
Renovation work at Ocean Park Apartments began in May 2025 and is expected to finish in 2026. The property’s rehabilitation is designed to repair deterioration caused by its beachfront exposure. Planned work includes critical structural repairs, replacing the paring deck, extensive waterproofing, window weatherization and improvements in relation to Local Law 11, which calls for the periodic inspection of exterior walls and accessories of buildings taller than six stories.
Two 26-story towers encompass Ocean Park Apartments. The 602 residences across these buildings range in size from one-bedroom to three-bedroom units. The development also features four commercial spaces.
When Tredway acquired the development earlier this year for $88 million, it entered into an agreement with the New York City Department of Housing Preservation and Development (HPD) to make sure every unit was rent-stabilized. Of the 602 units, 423 are intended for those earning 60% of the area median income and the other 179 are for those earning 80% of the area median income.
Energy-efficient improvements are also in the works at Ocean Park Apartments. Such planned improvements include installing low-flow fixtures, heating and cooling controls and other measures to conserve water and electricity.
“Tredway is pleased to complete this preservation in partnership with Merchants Capital and to significantly strengthen Ocean Park’s affordability, ensuring it remains a beacon of opportunity for the entire Far Rockaway community,” Tredway Founder and CEO Will Blodgett said. “We are deeply grateful for the support of our public and private partners. Your teamwork and collaboration are key to our success.”
Amenities available to residents of Ocean Park Apartments include access to a swimming pool, onsite parking, a spacious community room, multiple playgrounds and over 9,000 square feet of retail space, featuring a physical therapy center, a pharmacy and quick service retail.
City Harvest is partnering with Tredway to provide expanded monthly food distributions to the residents of Ocean Park Apartments. Additionally, the nonprofit Rising Tides Effect will be providing swim and water safety programming there.
