Gotham Organization is refinancing its residential property in Hell's Kitchen, Manhattan.
The developer has secured a $460 million debt package from Wells Fargo, which comprises a $200 million floating loan and $260 million in fixed-rate debt, according to a report from The Commercial Observer. Additionally, the financial institution has secured a credit enhancement from Fannie Mae.
The property, known as Gotham West, was first developed in 2013, at a total cost of $520 million. The New York State Housing Finance Agency initially provided 100 percent tax-exempt bonds thanks to over half of the 1,238 apartment units at the property getting designated as middle-income or affordable, according to the Commercial Observer.
The offerings at the site, located between 44th and 45th Streets east of 11th Avenue, range from studios to three bedrooms. Amenities at Gotham West include two fitness centers, a roof deck, a coworking space, playrooms for children, and a courtyard.
The move comes as the Gotham Organization's 46-story residential project in Hudson Yards, Manhattan, with 453 total units and 137 reserved for the affordable bracket, was recently completed and is nearly 75 percent rented.. Leasing is set to kick off during the fall at the property known as The Maybury.
In May, Manhattan, for the third time in the past four months, set a new rental price record, reaching $4,571 in May, as reported by Douglas Elliman. Studio apartments saw the biggest increases by property type from 12 months ago, surging by 9.5 percent on average to $3,400. That came as vacancy slipped by two basis points to 2.25 percent and leasing activity dropped by four percent.
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