MIAMI—Taconic Investment Partners is making a name for itself in multifamily adaptive reuse. The company is currently working on a multifamily project in Tribeca called The Sterling Mason, which combines a turn-of-the-last century warehouse with ground-up new construction, among others.

GlobeSt.com caught up with Kevin Davis, Chief Investment Officer for Taconic, to get his take on how rising interest rates could impact multifamily, what his firm has going on right now and how that will change in 2014—and more. Be sure to come back this afternoon where we dive deeper into the topic of multifamily adaptive reuse.

GlobeSt.com: Do you see any major changes occurring in multifamily development with interest rates rising?

Davis: As interest rates rise, financing will become more expensive and more difficult to secure across the board, which makes the economics of development more challenging. At the same time, higher borrowing costs make home ownership more expensive, which may drive potential buyers out of the for-sale market. We could see an increased demand for multifamily rentals as a result.

GlobeSt.com:  Is your firm doing more multifamily development this year than last year? If so, why? If not, why not?

Davis: Yes, Taconic is developing more multifamily projects this year. The fundamentals in New York City are great for multifamily, but it's very difficult to find sites that are priced to support it, so when we find sites that work for multifamily, we build.

GlobeSt.com: What's in store for 2014 in your multifamily development pipeline?

Davis: Taconic Investment Partners has two new projects in the pipeline, a luxury condominium in Tribeca and a 400-unit rental building on the Far West Side, and is actively pursuing additional multifamily development sites.

Construction is currently underway at this new luxury condominium, located at 71 Laight Street, and is expected to be complete in the fall of 2014. The Sterling Mason comprises 33 residences ranging from two to five bedrooms.

For this development project, we acquired two properties: a landmarked circa 1905 warehouse at 401 Washington Street and a modern parking garage at 412 Greenwich Street. With the vision of Morris Adjmi Architects, we obtained approval from New York City's Landmarks Preservation Commission to restore and adapt the landmarked warehouse and integrate ground-up construction designed as its mirror image at 412 Greenwich Street to create a single condominium building.

Come back this afternoon for part two of this exclusive interview.