William Macklowe Lands $35M Construction Loan
The developer is planning a six-story building near Manhattan's East Side "Hospital Row."
NEW YORK CITY– The William Macklowe Company and LaSalle Property Fund have received a senior secured construction loan of up to $35 million for development of a new office building at 323 E. 61st St. in Manhattan.
CIT Group Inc.’s real estate finance division provided the financing. The project is a planned six-story, 74,000 square-foot facility that will operate in close proximity to some of New York City’s most prominent hospitals, research centers, medical schools and medical office buildings.
“We see this project as the right development in an attractive location and we look forward to its successful completion,” says William S. Macklowe, founder of the William Macklowe Company.
Chris Niederpruem, managing director and East Coast head of CIT’s real estate finance group, emphasizes his company’s experience in financing commercial property development in New York City. “This transaction demonstrates our ability to provide secure financing that maximizes value for developers,” he says.
Commercial Observer reported that the financing included a $31.4 million building loan and a $3.6 million project loan. In a May 8, 2018 press release, LaSalle had announced that it formed a joint venture with the William Macklowe Company to build a medical office facility at 323 E. 61st St., “situated in what is commonly referred to as ‘Hospital Row.’” The release noted that the William Macklowe Company would be the developer.
Although a private enterprise, the project falls in line with the city’s goals in diversifying and building New York City’s economy, boosting life sciences. Alexandria’s recent private development in Long Island City, Queens, and its partnership with the city for development in Kips Bay reinforce some of the momentum behind building medical and science research facilities on Manhattan’s East Side.