Richard Bassuk, Chief Executive Officer, and Drew Fletcher, President, of Greystone Bassuk, advised the closing of a $103,000,000 construction loan with Bank of China, New York Branch on behalf of an affiliate of The Moinian Group (“TMG”) for 572 11th Avenue in New York City. The loan was structured as a letter of credit enhancing taxable variable-rate bonds issued by The New York State Housing Finance Agency (“HFA”). Notably, the Project was originally slated to receive tax-exempt bond financing and tax credits under the old HFA “80/20” Program, but was required to pivot and close under a 100% taxable execution when the Agency unexpectedly changed its funding policy in June. The new program still provides a full mortgage recording tax exemption, which preserves a valuable and important benefit for the Borrower.
572 11th Avenue is located diagonally across the street from Sky Residences, TMG’s flagship 1,175-unit luxury rental development located just down the block at 605 W. 42nd Street, and residents of the new building will have access to Sky’s unparalleled suite of services and amenities, including Lifetime Fitness. Designed by the premier architecture firm CetraRuddy, the building is intended to blend into the historic context of the neighborhood providing residents with an inconspicuous and serene private living space amid the newly constructed large-scale buildings that tower over 42nd Street. Once complete, the 13-story Project will comprise 185,000 gross square feet with 164 units and over 25,000 square feet of prime street-level and below-grade retail. In addition, 25% of the units (46 apartments) will be set aside for low and moderate income households pursuant to the new 421-a Program and the New York City Department of Housing Preservation and Development’s (“HPD”) Inclusionary Housing Program.
“The Moinian Group has been a driving force in the transformation of the Far West Side for over a decade, and this Project is yet another example of how Joe Moinian continues to set the bar for luxury residential living in Manhattan,” said Mr. Fletcher. “We are honored to have once again represented the Moinian Group and Bank of China on this exciting transaction.”
”The Moinian Group is thrilled to deepen its relationship with Bank of China, HFA and HPD with this exciting development,” said Joseph Moinian, CEO and Founder of The Moinian Group. “This Project is the culmination of our multi-phase development that started with the Altelier condominiums over a decade ago, and we are extremely proud to have participated in the rebirth of the Far West Side as one of New York City’s most vibrant neighborhoods.”