Affordable Manhattan Development Secures $288M
The project is set to include 611 units.
Sherman Creek North Cove rendering. Image courtesy of Wells Fargo
Wells Fargo has provided $288 million in construction financing for Sherman Creek North Cove, a 611-unit mixed-use development in Manhattan’s Inwood neighborhood.
Joy Construction Corp. and Maddd Equities are the developers of the project, which secured, in total, $414 million. The joint venture purchased the site for roughly $4.3 million in 2015, as reported by The Real Deal.
Aufgang Architects is designing the 30-story building. The units will be designated for tenants earning between 27 and 110 percent of the area median income. A total of 94 units will be reserved for previously homeless households.
Sherman Creek North Cove will offer laundry facilities, bike storage, community rooms, rooftop and outdoor recreation areas, a fitness center and 120 parking spaces. The development will also feature 60,000 square feet of retail space. The project is seeking LEED Gold Certification.
The development is located at 3875 Ninth Ave., near University Heights Bridge, the 207th Street metro station and Interstate 87. There are many retail centers, entertainment venues, dining options and green areas in the proximity, such as Fort Tryon Park and Highbridge Park. Bronx Community College and New York-Presbyterian Allen Hospital are within a 1-mile radius of the site.
LIHTC and BRCT financing
The total financing for the project includes city loans, tax credits and tax-exempt bonds issued by the city’s Housing Development Corp. Wells Fargo’s Community Lending and Investment acquired the tax credits and provided credit enhancement on the bonds.
Managing Directors Katherine McAdams and Duane Mutti from CLI Debt arranged the $155 million Letter of Credit for the New York City tax-exempt bonds. CLI Equity’s Managing Director David Mayseless and Korbin Heiss arranged the $133 million equity investment, by purchasing New York State Brownfield Redevelopment Tax Credits and Low-Income Housing Tax Credits.
The members of the team that arranged the deal also included Director Dennis Boothe, Vice President Susan Toyofuku, Managing Directors Ross Stewart and Mark Mendenhall, Associates Donyel Simon-Hill and Madalena Tran and Analyst Rian Gipson.
Recently, New York State has been awarded with approximately $390 million in subsidies and bonds for the preservation and construction of more than 1,600 affordable homes. The funds have been secured as part of the state’s fiscal year 2023 budget.
