Manhattan Luxury Asset Gets $200M Refi
- Jan 31, 2019
Less than two years after completing a two-tower, 392-unit apartment community at 525 W. 52nd St. on Manhattan’s West Side, joint venture partners Taconic Investment Partners LLC and Mitsui Fudosan America Inc. have refinanced the rental property with a $200 million permanent loan arranged by Greystone Bassuk.
The 10-year, fixed-rate loan was originated by Wells Fargo Multifamily Capital and structured as a direct purchase of tax-exempt and taxable bonds issued through the New York State Housing Finance Agency’s (HFA) 80/20 Housing Program with a secondary market credit enhancement.
The new loan replaces the original $185 million construction facility provided by Wells Fargo, J.P. Morgan and M&T Bank in 2014. Greystone Bassuk also arranged the earlier financing, which set a record at the time for the largest construction financing structured entirely as a private placement under the HFA 80/20 Housing Program. It was also the first private placement execution with multiple bond purchasers.
“This transaction required a strong partnership between New York State Housing Finance Agency, Wells Fargo and Greystone Bassuk and we thank them for their commitment and dedication to delivering a great execution for Taconic and Mitsui Fudosan,” Taconic’s Chief Investment Officer Chris Balestra, said in a prepared statement.
Greystone Bassuk—a joint venture between Greystone and The Bassuk Organization, led by President Drew Fletcher—served as the exclusive advisor on the transaction. Fletcher led the marketing of the new debt with support from Managing Director Matthew Klauer and Associate Bryan Grover.
“Taconic’s disciplined investment approach and commitment to identifying and unlocking long-term value in emerging neighborhoods has made it one of New York City’s most dynamic and successful developers,” Fletcher said in a prepared statement. “525 is yet another example and has quickly become one of the most desirable buildings in Manhattan’s burgeoning West Side. We are extremely proud to have represented Taconic and Mitsui on this market-leading transaction.”
The property is located in one of Manhattan’s fastest growing residential neighborhoods on a block that extends from 52nd Street to 53rd Street between 10th and 11th Avenues. It has two towers over a common podium rising to 14 and 22 stories with 392 units and contains approximately 445,000 square feet, including more than 35,000 square feet of lifestyle and recreational amenities. Of the 392 units, 79 have been set aside for low-income households at or below 60 percent of the area median income.
Designed by Handel Architects, the façade emulates the historic warehouses of the Far West Side with a palette of brick, metal and glass. The building has a series of cascading private terraces along the western side, giving residents views of the Hudson River and Midtown Manhattan.
Interiors include kitchens with custom Italian cabinetry, Ceasarstone countertops and high-end stainless steel appliances as well as custom closets, in-unit washers and dryers and white oak flooring. Amenities feature a 24-hour staffed lobby, fitness center, outdoor courtyard, 16th floor sundeck, pet care center, library, private screen room, resident storage lockers and bike storage.
The developers began marketing the luxury condo property in May 2017. At that time, monthly rents were starting at $2,730 for a studio and approximately $6,900 for a two-bedroom apartment.
Image courtesy of Greystone Bassuk