East Village Mixed-Use Project Gets $204M Capital Injection
The developers are also seeking to expand the development over an adjacent parcel.
A joint venture between SK Development and Kinsmen Property Group has secured $203.5 million in construction financing for the development of 50 Third Ave., a two-building, 184-unit, mixed-use project located in Manhattan’s East Village neighborhood.
Walker & Dunlop arranged the floating-rate, interest-only loan through Ironsand, a real estate private debt manager.
The proposed 17-story development will include adjoining Class A residential buildings, with 37 residences designated as affordable for households earning 80 percent or less of area median income. The affordable units would be included as part of the city’s 485-x tax abatement program.
Located between East 10th and East 11th streets, the buildings will be split into 99 units and 85 units, sharing a lobby and amenities including a fitness center, a yoga studio, a sauna, a cold plunge, a golf simulator, a coworking space, a resident lounge and common terraces. Additionally, the property will have 12,529 square feet of ground-floor retail space with frontage facing Third Avenue.
Walker & Dunlop Capital Markets Institutional Advisory served as exclusive advisor to the joint venture partners. The team included Senior Managing Directors Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Senior Director Sean Bastian.
Using unused development rights
The developers are seeking approval from the Department of City Planning to transfer 26,100 square feet of unused development rights from the nearby St. Mark’s Church-in-the-Bowery. If granted, the joint venture will be able to build a larger project on the land assemblage, which is comprised of parcels from 50-64 Third Ave.
The New York City Landmarks Preservation Commission unanimously granted its approval of the air rights transfer in July, according to The West Side Spirit. It was the first transfer of development rights application filed for a faith-based organization under the new City of Yes for Housing Opportunity zoning reforms. Previously, unused air rights could only be transferred to adjacent properties.
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The church is located at 131 E. 10th St., at the corner of East 10th Street and Second Avenue. If approved, the funds received from the transaction would be used to help maintain the historic church and pay for repairs including the restoration of stained-glass windows and the replacement of slate roofs.
Consistent demand in supply-constrained market
The East Village is one of New York City’s most supply-constrained markets, with a vacancy rate of approximately 2 percent, according to Walker & Dunlop. As of June, average asking rents were approximately $5,440 per month.
In late 2024, Walker & Dunlop Capital Markets arranged a $110 million floating-rate bridge loan from Hudson Bay Capital for Davean Holdings and Meadow Partners to refinance an 18-asset multifamily portfolio featuring 112 apartments and 29 commercial units in several Manhattan and Brooklyn neighborhoods, including the East Village.
