Gotham Lands $460M for Manhattan Community

Wells Fargo and Fannie Mae were instrumental in this deal.

Gotham Organization has obtained a $460 million debt package to refinance Gotham West, a 1,238-unit community in New York City’s Manhattan borough. The transaction was structured as a direct bond purchase, with Wells Fargo acting as lender, according to Commercial Observer.

gotham west
Gotham West comprises 555 market-rate units and 683 affordable or middle-income units. Image courtesy of Yardi Matrix

The new financing replaces a previous $460 million loan that Wells Fargo had held since 2011, when it co-led the original construction financing for the project, The current structure, including $260 million in fixed-rate debt and $200 million in floating-rate debt, comes with a credit enhancement from Fannie Mae.

Gotham initially obtained $520 million for the project’s construction in 2011, according to Yardi Matrix data. In addition, Gotham and several investors provided $200 million as collateral.

The financing package included tax-exempt bonds from the New York State Housing Finance Agency and federal tax credits backed by a consortium of banks led by Wells Fargo. The bonds were issued on a tax-exempt basis in exchange for the designation of roughly half of the units as middle-income or affordable housing.

Gotham West, up close

Built in 2013 and designed by SCLE Architects to achieve the LEED Gold certification, Gotham West encompasses 555 market-rate and 683 affordable or middle-income units across four buildings, the tallest one rising 31 stories. Constructed in five phases, the community features studio, one-, two- and three-bedroom floorplans ranging between 433 and 1,546 square feet.

Common-area amenities include two fitness centers, a business center, a clubhouse, a media room, an outdoor courtyard, a roof deck, coworking spaces, two children’s playrooms, laundry facilities and approximately 200 parking spaces.

Located at 550 W. 45th St. in Manhattan’s Hell’s Kitchen neighborhood, Gotham West is within walking distance of 50 Street Metro Station, West 39th Street Ferry Station, Times Square and Pier 88, among many others.