Walker & Dunlop has arranged $147.5 million for a major Port Chester development. The financing combines debt and equity for the construction of 2 South Main. The landmark project will rise in downtown Port Chester, New York. Walker & Dunlop announced the transaction today through its Capital Markets business.
The development will create a 12-story, 355,000-square-foot mixed-use building. It will include 322 residential units and 330 parking spaces. The project will also provide 5,000 square feet of retail space. Hyperion Group and Co-Developer AIP will develop the property with LRC Construction.
The project will also feature state-of-the-art amenities for future residents. Meanwhile, the financing provides a major capital foundation for the planned development. Walker & Dunlop Capital Markets served as the exclusive advisor to the sponsorship group.
The group consists of Hyperion, Winter Properties, and AIP. Mo Beler, Jonathan Paine, Cory Elbaum, Jackson Irwin, and Dawson Jessee arranged the equity investment. Related Fund Management provided the equity investment for the project.
Additionally, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, and Sean Reimer worked on the transaction. Jordan Casella, Christopher de Raet, and Stanley Cayre also supported the financing process. The team secured construction financing from Arbor Realty Trust.
The project also benefits from public-sector incentives. It sits within an Opportunity Zone in Port Chester. Furthermore, the development benefits from a 20-year PILOT agreement. The agreement comes through the Port Chester Industrial Development Agency. Financing Supports Major Multifamily Development
The $14.5 million capitalization supports construction of the 2 South Main development. The project addresses demand for new housing in a growing Westchester County location. Walker & Dunlop structured both the construction financing and equity investment.
The company also incorporated available public-sector incentives into the capital strategy.
“The successful capitalization of 2 South Main demonstrates the continued demand for well-conceived housing developments that meet both market needs and community priorities,” said Beler, senior managing director of Capital Markets and co-head of Equity & Structured Finance at Walker & Dunlop. “We structured and sourced the project’s construction financing and equity investment while leveraging public-sector incentives. This enabled us to deliver a comprehensive capital solution that positions the development for long-term success and supports the continued growth of downtown Port Chester.”
Hyperion Principal and CEO Robert Vecsler stated, “We are delighted to bring this best-in-class residential community to the most desirable location in the heart of Port Chester, New York.” Vecsler further noted, “2 South Main continues Hyperion’s strategy to identify urban-adjacent residential locations with independent economic and demand drivers. 2 South Main will set the standard for the residential experience in this market, offering state-of-the-art amenities and finishes, walkability to local shops, restaurants and entertainment, and proximity to the Metro-North Station, Westchester employment centers, as well as neighboring cities Rye and Greenwich.”
The development sits along the Byram River near the Connecticut border. Port Chester provides direct Metro-North access to Manhattan. The community has also undergone significant transformation over recent years. Its development has been supported by cuisine, music, and a compact urban environment.
Port Chester Advances Downtown Revitalization
Port Chester continues to attract attention as a transit-connected Westchester community. The Village and New York State have prioritized downtown and waterfront revitalization. Public planning has focused on approximately 120 acres surrounding the train station. The area has significant redevelopment potential due to its transit connections.
In 2020, the community adopted a form-based zoning code. The framework supports transit-oriented development and improved walkability. It also encourages stronger connections between downtown areas and the Byram River. AIP founder and CEO Scott Allen emphasized the project’s broader community role.
“It is an honor to build alongside such an exceptional best-in-class partnership and to help carry forward Port Chester’s strategic downtown vision,” said Scott Allen, founder and CEO of AIP. “2 South Main isn’t merely a building, it is a new front door and a new future for Liberty Square. Central to AIP’s endeavors are the people and the futures we help shape and 2 South main reflects that: it expands walkability, breathes new life into the street below, elevates urban living, and strengthens connectivity through thoughtful, sustainably focused development.”
The project will therefore contribute to the area’s ongoing redevelopment strategy. It will introduce new residential supply within the historic Liberty Square area. The location also provides access to several transportation and employment centers. Residents will have access to the MTA Metro-North station near the development.
Grand Central Terminal can be reached in approximately 45 minutes. The property also provides direct vehicular access to I-95 and I-287. These highways connect residents with Westchester County and nearby employment markets.
Key employment centers include Stamford, Greenwich, and White Plains. The location also provides access to the broader New York metropolitan area.
Amenities and Connectivity Strengthen Project Appeal
Future residents will have access to Class-A amenities at 2 South Main. The property will sit near shops, restaurants, and entertainment venues. The development will also be close to the marina and public waterfront park. Additional nearby attractions include the Capitol Theatre and AMC cinema.
Rye Beach is also located within minutes of the property. Residents can access nearby Westchester Country Club golf courses. The Edith G. Read Natural Park & Wildlife Sanctuary is also nearby. Together, these features support the project’s residential positioning.
Construction is expected to begin during the fourth quarter of 2026. Arbor Realty Trust also emphasized the importance of the financing.
“Arbor Realty Trust is proud to provide construction financing for 2 South Main, a big step forward for a New York neighborhood, through our active and growing Arbor Private Construction (APC) lending program,” said David E. Friedman, executive vice president, chief credit officer, Non-Agency, and head of APC. “The landmark multifamily residence will create hundreds of housing units and advance Arbor’s commitment to enhancing the rental supply in communities across the United States.”
The financing reflects continued activity across the multifamily real estate sector. Walker & Dunlop’s Capital Markets team sourced more than $22 billion in 2025. The capital came from non-Agency capital providers. Nearly $16 billion of that amount supported multifamily properties.
This experience supports Walker & Dunlop’s role across multiple real estate asset classes. The company advises developers, owners, and operators across the industry. The 2 South Main transaction adds another significant multifamily financing deal.
It also combines private capital with public incentives for a major New York development. The project is expected to expand housing options in downtown Port Chester.
Furthermore, its transit-oriented location could strengthen access to regional employment centers. The planned retail component should also contribute to activity along Main Street. The project will therefore combine residential, retail, transportation, and community-oriented elements.
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News Source: Businesswire.com
