Strategic Capital Backs NYC Hudson Square Development
The affiliate of a giant Chinese firm is taking a $140 million equity stake in the project, which will be co-developed by Cape Advisors. Located in Manhattan’s West SoHo enclave, the 280,000-square-foot tower will feature 170 condominium units, ground-floor retail and parking.
In its first foray into Manhattan’s residential market, Strategic Capital has initiated an equity investment of $140 million in a development in the borough’s Hudson Square neighborhood. The investment is comprised of equity and mezzanine components invested in a joint venture with Cape Advisors and Forum Absolute Capital Partners (FACP). Strategic Capital and Cape Advisors will co-develop the property.
Located at 110 Charlton Street and 537 Greenwich Street in the West SoHo enclave, the property will be a 280,000-square-foot tower featuring 170 condominium units, in addition to ground-floor retail and parking.
“We felt like all real estate, the location here was an important criteria for a luxury housing project in Manhattan,” Strategic Capital chief development officer Phillip Gesue told MHN. “This particular location is at the intersection of the West Village, SoHo and Tribeca, a very supply-constrained neighborhood, with unobstructed views of the Hudson River. And we felt very comfortable with the idea of a for-sale development.”
There was good reason to make it a condominium rather than rental development, he added. “It’s really a forever location very popular with New Yorkers as a long-term residence location,” Gesue said. “The West Village and Tribeca are very well established as ownership neighborhoods. These neighborhoods are historic districts, with low permitted density and height limits, constraining what is built there.”
Strategic Capital and Cape Advisors have named Paris-based Loci Anima and Adamson Associates for the luxury loft design. Slated to begin construction in June, the project will be built by Strategic Capital affiliate Plaza Construction. Condominium sales are slated to commence in spring of next year.
Eastdil Secured brokered the joint venture between Strategic Capital and Cape Advisors. Shearman & Sterling represented Strategic in the transaction. Haynes and Boone represented Forum Absolute Capital Partners and Cape Advisors.
Strategic Capital is the investment arm of China Construction America (CCA), the U.S. subsidiary of Fortune Global 500 behemoth China State Construction and Engineering Company, among the largest investment and construction companies on earth.
“CCA is pleased to be involved in this joint venture through our subsidiaries, Strategic Capital and Plaza Construction,” said CCA CEO Ning Yuan, who notes his company’s experience as a global investor, developer and builder will establish a solid foundation for the creation of the new development. “We look forward to continuing their successful track records with this important Manhattan project.”
“This investment demonstrates our in-house ability to identify, finance and develop large-scale real estate assets,” said Strategic Capital president Linsen Zhang. “The combination of outstanding location, unobstructed views and distinctive architecture make this a unique condominium project.”
“We look forward to having the opportunity to partner with both Strategic Capital and Forum Absolute Capital Partners in the development at this unprecedented West SoHo site that has been a major focus of Cape’s for over two years,” said Cape Advisors co-founder and co-managing partner Craig Wood.
Based in greater New York, Strategic Capital is a global investment and development firm with a national portfolio of more than $1 billion, possessing an integrated team of engineering, construction, architecture, design, finance and business professionals.
