NEW YORK CITY—The 44-story Queens Plaza Southproject got a major infusion of capital. The ownership of theplanned rental apartment tower in Long Island City, Queens hassecured $148.45 million in non-recourse construction financing forthe venture.

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The funding was announced by Mission CapitalAdvisors, which arranged the construction financing forthe joint venture between Property Markets Group,Kamran Hakim and New Valley, LLCwith Deutsche Bank. Deutsche Bank's loanrepresented 70% of the total capitalization for the project.NorthStar Realty Finance, the first mortgage landlender, provided a $40.25 million mezzanine loan, by subordinatingtheir existing loan to the new first mortgage loan of DeutscheBank, bringing the total financing to $188.7 million, or 90% of thetotal project capitalization, Mission Capital officials say.

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The 391-unit project will also include 165 parking spaces and20,000 square feet of retail space. Amenities will includepanoramic views of New York City, a rooftop pool, fitness center,lounge, and children's playroom.

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Mission Capital's Jason Cohen, AriHirt, Steve Buchwald and JamieMatheny represented the borrower. Earlier this year, thesame team arranged a $95-million non-recourse construction loan for10 Sullivan St. in New York City on behalf of PMG.

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“Mission leveraged its depth of relationships to secure the mostefficient source of capital for the non-recourse financing. Wereceived a significant amount of interest from lenders, who wereimpressed with the strength of the sponsor and the quality of theproject,” says Mission Capital's Hirt.

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“Queens Plaza South is anticipated to be one of the premierdevelopment projects in Long Island City, and an important step inthe continuing development of this neighborhood as one of the mostdesirable and fastest growing residential communities in New YorkCity,” says Kevin Maloney, founding principal ofPMG.

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The Queens Plaza South financing brings Mission Capital toapproximately $770 million in construction financing arranged sofar this year. With an additional $250 million signed up withlenders scheduled to close in 2014, the firm will exceed $1 billionin construction financing transactions.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.