Arden Living Wins $161M Manhattan Refi
The community was built in an opportunity zone.
Arden Living has obtained a $161 million refinancing loan for Forty-Six Fifty, a 22-story luxury apartment building in the Inwood neighborhood of northern Manhattan. Starwood Property Trust provided the financing.
Forty-Six Fifty was completed earlier this year in an opportunity zone, and is now 98.2 percent occupied, according to Yardi Matrix data. Located at 4650 Broadway, the community spans 222 units and includes studios, one- and two-bedroom apartments. The building also features more than 125,000 square feet of commercial and retail space, anchored by School in the Square, a public charter school, in addition to a Fine Fare Gold Supermarket. Units average 624 square feet, and rent for an average of $3,642 a month. There are 111 parking spaces, which rent for $500 a month.
Common-area amenities include a game lounge, kids room, fitness center, yoga room and basketball court. All together, there is approximately 42,000 square feet of indoor and outdoor recreational space for residents, including a landscaped terrace with a lounge.
The property is transit-oriented, located within a quarter-mile of a subway station, and located close to Fort Tryon Park.
Arden Living is an arm of Arden Group, which manages about $13 billion in assets. Starwood Property Trust, a part of Starwood Capital Group, deployed $108 billion of capital since inception and manages a portfolio of over $27 billion in debt and equity investments.
Demand for Manhattan apartments up, but new supply is weak
Manhattan multifamily is proving to be a resilient property type, with effective rents recovered to pre-pandemic levels, and in fact exceeding those levels in some places. Forecasts indicate continued growth. Demand is strong, but as cost of capital and material costs remain elevated, new construction is below historic averages, according to data from Matthews Real Estate Investment Services.
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During the first quarter of this year, some 9,045 multifamily units were absorbed in Manhattan, representing a turnaround from negative absorption of 16,797 units during the same period in 2024. By the second quarter of this year, absorption came in at a positive 5,780 units, also a turnaround from the same quarter of 2024, which saw a negative 12,879 units absorbed, Matthews reports.
Development opportunities in Manhattan are appearing more in the area niche submarkets and conversions, Matthews posits. The company expects an increase in office-to-residential conversions, with such recent initiatives such as City of Yes and the 467-m tax incentive spurring such conversions.
Last month, Vanbarton Group secured $300 million to fund the acquisition and conversion of 6 E. 43rd St., a 27-story office tower in Midtown Manhattan into 441 apartments. The development is taking advantage of zoning changes in the City of Yes housing development plan.
