Moinian Group, SL Green Snag $500M for Manhattan Tower
- Aug 24, 2017
Joint venture partners The Moinian Group and SL Green Realty Corp. have obtained a $550 million permanent Freddie Mac loan for Sky Residences, a Manhattan mixed-use residential buildings. Sky, located at 605 West 42nd St., includes 1,175 units and 70,000 square feet of amenity space in a 71-story tower.
Developed by Moinian and designed by Rockwell Group, the property offers various common amenities, such as a multi-level fitness club; water club; spa; lap pool; NBA regulation-size basketball court; two outdoor pools; café; and kids’ club. It also features a private outdoor park design by Thomas Balsley.
The building holds the distinction of being the largest single-tower residential building in the U.S., with 25 percent of its units designated as moderate and affordable housing. Lifetime Fitness, Volvo and Icon Parking occupy commercial space and the property also includes an onsite parking garage.
The Loan Refis Construction Finance
The Freddie Mac loan completes an exit from the original construction financing provided by Bank of China and Union Labor Life Insurance Co. in 2014. The permanent loan was structured as a direct purchase by Freddie Mac of the HFA bonds with a pre-stabilized funding and early spread lock.
The new financing structure was put in place under the Affordable New York Housing Program, the city’s revamped 421-a tax abatement program. The Greystone Bassuk debt advisory team, led by Richard Bassuk and Drew Fletcher, represented the borrower and assisted in obtaining the Freddie Mac loan through Greystone’s Affordable Lending team.
The transaction marks the largest-ever single-asset tax-exempt financing completed by Freddie Mac and a first-of-its-kind private placement structure that includes permanent financing for hundreds of affordable housing units in New York City. Steve Rosenberg, CEO of Greystone, together with Billy Posey, Joe Mosley and Jeff Englund, collaborated with Freddie Mac on the structure for Moinian and SL Green, and spearheaded the loan process for Greystone.