JV Lands $415M Loan for Manhattan Tower
- Jun 10, 2019
Douglaston Development has brought in a new equity partner and bagged a $415 million loan for its planned 58-story residential tower in Manhattan’s Hudson Yards neighborhood.
The developer has formed a joint venture with real estate private equity funds managed by affiliates of Ares Management Corp. to realize the 931-unit project, 601 W. 29th St. A group of lenders led by HSBC and including Bank of China, Landesbank Hessen-Thüringen, Santander Bank and Raymond James Bank provided the construction financing.
Greystone arranged the debt and equity deal. The venture has also closed on the purchase of about 120,000 square feet of air rights from Hudson River park, and will use the proceeds to fund “significant” park improvements in the area, the partners announced.
Demolition and site work on the FXCollaborative-designed project have already started. The development spans a full block on 11th Avenue between 29th and 30th Streets, at the intersection of West Chelsea and Hudson Yards. Upon its scheduled opening in late 2022, the property will offer 697 market rate and 234 affordable units.
The residential space will come with a panoply of high-end amenities, including a large fitness center and pet daycare, covering 50,000 square feet. The property will also feature 15,000 square feet of Class A retail space.
Towering neighbor for Hudson Yards
Douglaston Development signed a 99-year ground lease for the site last November, according to an account in The Real Deal. The plans for the tower were approved by the City Council in June 2018, a Douglaston Development representative told Multi-Housing News.
The site is just south of the $16 billion Hudson Yards mega-development, which celebrated the grand opening of its first phase in March. Developed by Related Cos. and Oxford Property Group, the project stretching from 30th to 34th between 11th and 12th Avenues will include more than 18 million square feet of commercial and residential space upon full completion.
Chaired by Jefferey Levine, Douglaston Development is active in building market-rate apartments, affordable housing, senior housing and hotels. The company teamed up with nonprofit organization The Actors Fund to build a 160-unit, fully affordable community at 705 Tenth Ave. in February.