JV Secures Financing for Manhattan Luxury Condos

Delancey Street Associates (DSA) has obtained financing to develop 202 Broome at Essex Crossing, a planned 14-story mixed-use building in Manhattan that will include 83 luxury condo units, 175,000 square feet of Class A office space and 34,500 square feet of retail space, including part of the Market Line.

DSA is a joint venture including BFC Partners, L+M Development Partners, Taconic Investment Partners and Goldman Sachs.

The development marks the seventh of Essex Crossing’s nine sites to close and begin construction, and it is the last of the project’s second phase.

“With luxury condos, groundbreaking Class A office space and a section of the Market Line all under one roof, what was once a parking lot will be transformed into a dynamic place to live, work, shop and play right at the heart of Essex Crossing,” Charles Bendit, Taconic Investment Partners’ co-CEO, said. “With the closing and start of construction at 202 Broome, seven of Essex Crossing’s nine sites are now either open or underway, residents are moving in, and much of our retail will open in 2018—including the first phase of the Market Line.”

Financing

Square Mile Capital Management is providing a $260 million acquisition and construction loan for the project, which is known as Essex Crossing Site 3.

The DSA joint venture has now closed on $1.3 billion of the project’s overall $1.5 billion in financing. Additionally, nearly 90 percent of financing for Essex Crossing is set, with approximately 90 percent of its square footage currently under construction.

The development cost for 202 Broome is projected to reach around $290 million. The HFF team of Evan Pariser, senior managing director and Scott Aiese, managing director, arranged the loan.

The residential segment of the development, located on floors six-14, will offer expansive views and a generous amenity program boasting a lounge, fitness center, terrace, and a supplemental laundry facility and storage spaces for purchase.

Construction on the project is set to begin in the next few weeks with a completion date expected around 2021.

“We’re excited to increase our investment in Essex Crossing,” Margaret Anadu, Goldman Sachs Urban Investment Group’s managing director, said. “Our investment in the project, which now totals nearly $500 million, is our largest to date, a recognition of its importance to this diverse and vibrant community.  The building in particular brings needed quality housing, retail and Class A office space that will catalyze more businesses growth and job creation.”
to participate and we are confident in its success.”

More than Condos

The mixed-use building will also include 16,000 square feet of ground floor retail, and office space that will feature oversized windows on all sides of the building, offering views of both Midtown and Lower Manhattan skylines, high ceilings, bike rooms with showers, and gathering and event spaces in the triple-height atrium.

The project’s bottom level will house a segment of The Market Line, a bazaar-like marketplace spanning 700 feet along Broome Street.