Luxury Condo Developer Lands $251M in Financing for Hell’s Kitchen Project
Commercial brokerage firm JLL reports that CBSK Ironstate has secured $181 million in construction financing from Deutsche Bank and another $70 million in equity from an unnamed institutional investor for the project at 646 11th Ave.
NEW YORK CITY—Partners seeking to develop a luxury condominium project on 11th Avenue in Hell’s Kitchen has secured $251 million in debt and equity financing for the venture.
Commercial brokerage firm JLL reports that CBSK Ironstate has secured $181 million in construction financing from Deutsche Bank AG and another $70 million in equity from an unnamed institutional investor for the project at 646 11th Ave.
CBSK Ironstate is a joint venture formed by Charles Blaichman’s CB Developers, Scott and Abe Shnay’s SK Development and Michael and David Barry’s Ironstate Development. The partners have collectively developed more than $1 billion in projects, including 10 Bond St., 301 East 50th St., Chelsea 29 (221 West 29th St.), The Frontier (200 East 39th St.), The Lindley (591 Third Ave.), POD Brooklyn and The Jefferson (211 East 13th St.).
The 12-story 646 11th Ave. spans the entire block front between 47th and 48th streets on the east side of the avenue. The project comprises approximately 161,000 net sellable residential square feet, approximately 40,000 rentable square feet of pre-sold retail space, 8,000 square feet of residential amenity space and 60 for-sale storage units.
JLL vice chairman Aaron Appel, managing directors Keith Kurland and Jonathan Schwartz, EVP Mark Fisher and associate Douglas Baillie arranged the financing for the project.
“Hell’s Kitchen is one of the most vibrant communities in Manhattan and has recently experienced rapid development,” Appel says. “The future of the area is being re-shaped with around 17 million square feet in retail, commercial and residential space underway. This transaction offered the lenders an opportunity to finance one of New York’s most experienced residential developers in a project with significant risk-mitigation.”