Manhattan Communities Get $119M Refi
The owner secured the Fannie Mae financing in preparation for the expiration of the city's 421a tax abatement program.
Atlantic Development Group has secured loans for two of its communities in Manhattan, for a total of $119 million. The developer secured an $80 million loan for 33 West End Apartments on the Upper West Side and a $39 million loan for Port 10 Apartments in the Chelsea neighborhood. The fixed-rate, long-term Fannie Mae loans will be serviced by Jones Lang LaSalle Multifamily LLC, a Fannie Mae DUS lender.
READ ALSO: Manhattan Landmark Gets $386M Refi
The Upper West Side property, 33 West End Apartments, is a 211-unit residential community that comprises a mix of affordable and market-rate units with a mix of studio, one- and two-bedroom apartment layouts. Built in 2006, the community also houses more than 7,000 square feet of ground-floor retail and resident amenities including a fitness center, tenant lounge, bus service to the train station and an outdoor terrace.
Built in 2010, the 89-unit Port 10 Apartments is located at 303 10th Ave. in Chelsea and houses a mix of 71 market-rate units and 18 designated affordable units. The 13-story property features resident amenities including a resident lounge, roof deck, fitness center and bike storage, as well as an additional 8,000 square feet of retail space.
“This refinancing was structured to address the issue that a lot of NYC property owners are facing, an upcoming period where taxes will increase drastically as the 421-a benefits expire,” C.W. Early, managing director at JLL, told Multi-Housing News. Early led the JLL Affordable Housing Capital Markets team that represented the borrower in the refinancing.
“A long-term, fixed-rate execution through the benefit expiration period, often mixed with a long interest-only period, gives the owner certainty of their obligations and does not force them to have to refinance while taxes are increasing. The current low interest rates for long-term debt also help make this structure very attractive.”