Moinian Group’s FiDi Conversion Gets $131.5M Loan
The developer is transforming a former office building in Downtown Manhattan to a residential property of studios and one-bedrooms to attract millennials and Gen Z.
NEW YORK CITY—The Moinian Group’s 17 Battery Place North, located at 2 Washington St., received financing of $131.5 million from Square Mile Capital. The loan will pay for the developer’s conversion of the Financial District 398,000 square-foot office building into a 345-unit residential property.
Next to Battery Park, the multifamily rental building will have more than nine floors of amenities including a rooftop pool and lounge, simulated sports lounge, music studio, chef’s kitchen, poker lounge and co-working spaces. Designed by CetraRuddy, the development has a different twist: It will offer mostly studio and one-bedrooms to attract a millennial and Generation Z community of renters.
Joseph Moinian, founder and CEO of the Moinian Group, continues to place chips on Lower Manhattan. His company’s other downtown residential rentals include Ocean at One West Street which is next to 17 Battery Place North, plus multifamily developments at 90 Washington St. and 100 John St. The real estate firm is also developing a 35-story rental apartment at 7 Platt St.
In July 2009, Crain’s had reported that similar to other developers, Moinian was experiencing difficulties stemming from the 2008 financial crisis. The paper stated that he was having trouble paying loans at 180 Maiden Lane and 17 Battery Park North. Subsequently, as noted in Real Capital Analytics, SL Green had helped the Moinian Group by buying a 49.9% stake in 180 Maiden Lane for $425.7 million in November 2011, with both owners selling the property to a joint venture of MPH Realty Services and Clarion Partners for $470 million in January 2015.
“We saw the vast potential in Lower Manhattan when we began to invest here over 20 years ago, and we are pleased to see how the neighborhood, which is now bustling with restaurants, stores, parks and entertainment, has become a 24/7 destination,” says Moinian. “The completion of this financing at Two Washington St. will help us with our vision to bringing best-in-class residential properties to Lower Manhattan.”
Square Mile Capital principal Sean Reimer says his investment management firm is pleased to continue its lending relationship with the Moinian Group. “The Downtown Manhattan submarket is rapidly transforming into a 24-hour, live-work-play neighborhood and we believe the project is well positioned to capitalize on the growing residential demand,” he adds.
Drew Anderman and Alan Blank of Meridian Capital Group’s New York City office arranged the financing.