Gotham Organization and Goldman Sachs have secured $247 million in construction and mezzanine financing for its 47-story residential project in New York City that will offer market-rate and middle-income units.
Wells Fargo and US Bank provided a $212 million construction loan to Gotham and the Urban Investment Group within Goldman Sachs Asset Management to develop 550 10th Ave. on Manhattan’s West Side. The joint venture also received $35 million in mezzanine financing from Lionheart Strategic Management for the project that’s expected to be complete in 2024.
The luxury mixed-use residential tower will include 453 units, 316 of which will be market-rate with the remaining 137 reserved for moderate or middle-income tenants. The 430,000-square-foot community will also be built with a 10,700-square-foot amenity suite on the eighth floor that includes a fitness center, interior lounge that doubles as a coworking space and a gathering space and two outdoor terraces. Other amenities, like the rooftop lounge and the outdoor landscaped roof deck, will be built on the 45th floor of 550 10th Ave.
The residential development will also be built with a 26,764-square-foot office condo that Gotham and Goldman Sachs will convey to Covenant House to serve as the organization’s new international headquarters for administrative office space. The high-rise community will also include 9,000 square feet of retail space.
PARTNERING WITH NON-PROFIT ORGANIZATIONS
Besides offering the office condo of 550 Tenth Ave. to Covenant House, Gotham also previously worked with the non-profit organization to develop a brand-new purpose-built facility. The developer collaborated with Covenant House for the past five years to design, finance and construct the 80,000-square-foot facility for the organization that’s located next to the 550 10th Ave. site. Nancy Downing, executive director of Covenant House New York, said in prepared remarks, that it was the first purpose-built facility in the organization’s 50-year history in the city.
Gotham is also working on a two-tower community totaling more than 1,100 units in Long Island City alongside RiseBoro Community Partnership. The developer secured more than $445 million in financing for its project, named Gotham Point, in January 2020.