Atlantic Development Scores Two Fannie Mae Manhattan Apartment Building Loans

NEW YORK CITY-  Atlantic Development Group has secured two fixed-rate, long-term Fannie Mae loans for 33 West End Apartments and Port 10 Apartments, its two Manhattan mixed-income, high-rise residential buildings.  Jones Lang LaSalle arranged the deal.

As a Fannie Mae DUS lender, Jones Lang LaSalle Multifamily, LLC, will service both loans, which include the $80 million loan for 33 West End Apartments, and the $39 million loan for Port 10 Apartments.

The deal posed some challenges to originate with long-term executions that allowed the properties to transition through the 421-A tax exemption burn-off period and still maintain historically low-interest rates with long-term interest-only periods, to enhance cash flows, said Managing Director C.W. Early in a prepared statement.

“These were complicated transactions that needed an experienced lender with strong agency relationships,” said Peter Fine, CEO of Atlantic Development in New York City, in a prepared statement.

In proximity to  Lincoln Center and Central Park on the Upper West Side, it sits 33 West End Apartments, a 211-unit 25-story property. The building consists of a mix of affordable and market-rate studios, one-bedroom and two-bedroom units, ranging from 426 to 1,182 square feet, along with 7,191 square feet of ground-floor retail. Amenities include 24-hour concierge services, a fitness center, tenant lounge, bus service to the train station, in-unit and ground-floor laundry rooms and an outdoor terrace.

Located on 10th Avenue between West 27th and West 28th Street in Chelsea, Port 10 Apartments is a 13-story, 89-unit property completed in 2010. The building includes 8,000 square feet of ground-floor retail. Nearly 98% leased, the building consists of 71 market-rate and 18 affordable units with a resident lounge, rooftop, fitness center and bike storage.

“These deals presented a multitude of unique challenges for which JLL and Fannie Mae found solutions,”Early said.