W. 57th St. Condo Tower Gets Major Funding

NEW YORK CITY—Developers JDS Development and Property Markets Group have secured a $725 million construction loan to build their towering residential edifice at 111 W. 57th St. AIG and Apollo Global Management provided the funding, according to the Real Deal.

AIG is the senior lender on the project while Apollo is delivering a mezzanine loan. AIG's debt on the project is $400 million while Apollo's mezzanine loan is for $325 million, sources told the Real Deal. The funding will allow JDS and Property Markets to refinance a $230 million loan provided by Annaly Capital, sources tell the Deal.

The combined loan expires in four years, which gives JDS and Property Markets time to sell the 60-unit building's condos. Sales are slated to kick off this fall, Crain's New York Business reports, with construction expected to begin in the coming weeks.

The law firm of Kasowitz Benson Torres & Friedman represented the developers in the financing deal, GlobeSt.com has learned. A transactional real estate practice group team led by partner Douglas Heitner—which included Sara Saylor, Tyler Vinal and Bessie Takatsu—closed the deal. They have acted as lead counsel to the owners since January 2013, when the site was acquired. JLL's Aaron Appel reportedly represented the developers in the financing.

Known as the Steinway Tower for its location next to Steinway Hall, the $1 billion building, which sits along what's become known as Billionaires' Row, will be among the tallest residential buildings in the Western Hemisphere when it's completed in 2018. It's set to stand 1,438 feet tall and have 80 stories.