Manhattan Communities Get $119M Refi

Port 10 Apartments. Image courtesy of JLL

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.

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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 10^th 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.”