Developers Net $560M Refi for Manhattan High-Rise
Newmark and Greystone Capital Advisors arranged the financing package.
Ares Management and Douglaston Development have refinanced 3ELEVEN, a recently completed, 60-story, 938-unit mixed-income apartment tower in Manhattan’s Hudson Yards neighborhood. The $560 million in new financing includes a $500 million single-asset CMBS loan originated by Goldman Sachs and Wells Fargo and $60 million in mezzanine debt.
Citing a report by Kroll Bond Rating Agency, the Commercial Observer reported the floating-rate debt has a two-year initial term, three 12-month extension options and monthly interest-only payments. Yardi Matrix reported the CMBS loan co-funded by Goldman Sachs and Wells Fargo is trading in the pool NYC Trust 2024-3ELEV.
The financing was arranged by Newmark’s Jordan Roeschlaub, Nick Scribani and Jonathan Firestone and Drew Fletcher, Paul Fried and Bryan Grover of Greystone Capital Advisors. It repays a $415 million construction loan originated in June 2019 by a group of lenders led by HSBC that included Bank of China, Landesbank Hessen-Thüringen, Santander Bank and Raymond James Bank.
New Hudson Yards property
Completed just over a year ago, the property in the West Chelsea neighborhood at 311 11th Ave., previously known as 601 W. 29th St., is 99 percent leased. Construction of the $600 million project started in 2019 and the owners began leasing in August 2022. The property benefits from a 35-year tax abatement in exchange for reserving a portion of the units for affordable housing under New York State’s now-discontinued 421-a program. The building has 703 market-rate apartments and 235 affordable units with a mix of studio, one- and two-bedroom floorplans. Market-rate rents range from $4,982 to $10,287 with an average of $7,661, according to Yardi Matrix data.
The mixed-use tower has about 15,000 square feet of retail. The building includes 60,00 square feet of amenity spaces, including lounges, co-working spaces with conference rooms, a fitness center with a yoga studio, pool with cabanas, roof deck, children’s playroom, theater, music practice rooms and multiple outdoor gathering areas including a 42nd floor terrace and dedicated dog runs. The building has 80 parking spaces and covered parking is available.
Apartment features include washers and dryers in all units, hardwood floors, high-speed internet access and above standard ceiling height.
Managed by Clinton Management, the property management affiliate of Douglaston Development, 3ELEVEN spans the west side of 11th Avenue from West 29th to West 30th Streets. The location offers proximity to high-end shops and restaurants, the Hudson River and the High Line elevated park.
Earlier this week, Douglaston Development secured financing for the $190 million second phase of its mixed-use project providing 277 units of multifamily affordable housing next to the New York Botanical Garden in the Bronx, N.Y. The 12-story, 250,000-square-foot building at 2868 Webster Ave. in the Bedford Park neighborhood is the second phase of an affordable housing development that also includes 188 units of senior housing at 2850 Webster Ave.
