Taconic and Mitsui Receive $200M Loan for 525 W. 52nd St.
The new permanent loan replaces the $185 million construction loan for the multifamily property on Manhattan’s far West Side.
NEW YORK CITY—A joint venture of Taconic Investment Partners LLC and Mitsui Fudosan America, Inc. has refinanced its multifamily building at 525 W. 52nd St. The two-tower, 392-unit property is an 80/20 mixed-income rental asset in Manhattan’s Hell’s Kitchen neighborhood.
The 10-year, fixed-rate loan was originated by Wells Fargo Multifamily Capital. It was structured as a direct purchase of tax-exempt and taxable bonds issued through the New York State Housing Finance Agency’s “80/20” Housing Program with secondary market credit enhancement. The new permanent loan replaces a $185 million construction facility provided by Wells Fargo, J.P. Morgan and M&T Bank in 2014.
Greystone Bassuk, led by president Drew Fletcher, served as exclusive advisor on the transaction.
Completed in 2017, the property extends from 52nd Street to 53rd Street between Tenth and Eleventh avenues in one of Manhattan’s fastest-growing residential neighborhoods. It consists of two towers with a common podium, rising to 14 and 22 stories. The structure has approximately 445,000 gross square feet, including over 35,000 square feet of amenity space.
Designed by Handel Architects, the residential building has a brick, metal and glass façade that references the historic warehouses of the neighborhood. The building also features cascading private terraces with views of the Hudson River and Midtown Manhattan.
The apartment complex has a 24-hour staffed lobby, fitness center, outdoor courtyard, 16th floor sundeck, pet care center, library, private screening room, storage lockers and bike storage. The interiors include kitchens with custom Italian cabinetry, Ceasarstone countertops, and stainless steel appliances.
Of the 392 units, 79 of them are set aside for low income households at or below 60% of area median income.
Fletcher led the marketing of the debt, with the assistance of Greystone’s managing director Matthew Klauer and associate Bryan Grover.
“This transaction required a strong partnership between New York State Housing Finance Agency, Wells Fargo and Greystone Bassuk” comments Chris Balestra, chief investment officer of Taconic.
“Taconic’s disciplined investment approach and commitment to identifying and unlocking long-term value in emerging neighborhoods has made it one of New York City’s most dynamic and successful developers,” says Fletcher. “525 is yet another example and has quickly become one of the most desirable buildings in Manhattan’s burgeoning West Side.”