Gotham Refinances Two Manhattan Properties with $184M
The two large "80/20” luxury multifamily rental units received Wells Fargo loans replacing $140 million of Fannie Mae financing.
NEW YORK CITY—Gotham Organization closed on two separate refinancing loans totaling $184 million. The first $59 million loan refinanced The Nicole, a 19-story, luxury multifamily rental apartment located in Midtown West at 400 W. 55th St., between Ninth and Tenth avenues in Hell’s Kitchen. Completed in 2003, the development has 149 residential units, amenities and 34,000 square feet of commercial space. As an “80/20” building, 30 units are low-income housing.
The second loan of $125 million refinanced Atlas New York, a 48-story, 373-unit luxury multifamily rental building. Constructed in 2001, the apartment complex is at 66 W. 38th St., between Fifth and Sixth avenues. Also an “80/20” building, 75 units are low-income housing. The property includes an 18,000-square-foot garage and an expansive indoor and outdoor amenity space.
Both properties were refinanced with new 15-year fixed and floating rate permanent loans provided by Wells Fargo Multifamily Capital and structured as a direct purchase of the existing HFA and HDC tax-exempt and taxable bonds, along with supplemental taxable financing to generate additional proceeds for the borrower. The new debt replaces approximately $140 million in variable rate bond credit enhancement provided by Fannie Mae.
Gotham recently completed extensive renovations at both properties including upgrades to the unit interiors, common areas and amenity spaces. Gotham’s president David Picket comments, “Both of these loans required creativity, tenacity and cohesion among the various stakeholders.”
Greystone Bassuk’s president Drew Fletcher, managing director Matthew Klauer and senior associate Steven Deck were the borrower’s exclusive advisors. Fletcher opines that Gotham has demonstrated its ability to enhance neighborhoods with a creative approach to residential and commercial developments. “The Nicole and Atlas New York are perfect examples of well-designed, well-managed assets that continue to be market leaders in an increasingly competitive landscape,” he says.
Gotham has business divisions focused on development; property ownership and management; and hospitality. Its portfolio owns or is developing 4.1 million square feet of luxury rentals, condominiums, retail and mixed-use spaces. This includes the food halls Gotham West Market and Gotham Market at The Ashland.