Resi Towers Reel in Big Bucks: NYC’s Top Property Loans

Residential projects scored the city’s biggest real estate loans last month as lenders pumped money into several large developments. Luxury condos and multifamily projects, including two Extell Development towers and a Hudson Yards project by Douglaston Development and Ares Management, accounted for seven of the top 10 loans in July.

Across the East River, Nicholas Silvers and Sam Charney scored financing for their two-tower Gowanus development, and an acquisition loan closed the latest chapter of the William Vale hotel saga.

Here are more details.

JVP to MVP | $620M | Upper West Side

JVP Management refinanced $620 million in construction loans and issued $70 million in new debt when it took over as senior lender at Extell Development’s Upper West Side condo project. JVP, the mezzanine lender at 50 West 66th Street, snapped up the project’s senior debt from Bank OZK. Although the 40-story tower only recently topped out, more than half its 124 units are in contract, according to Extell, and much of the debt has already been paid off, records show.

What’s the 311? | $500M | Hudson Yards

Goldman Sachs and Wells Fargo provided Douglaston Development and Ares Management with $500 million in CMBS to refinance 3eleven, a 60-story tower in Hudson Yards. The loan has a two-year floating rate and includes three one-year extensions, BisNow reported.

The developers will use the financing, as well as $60 million in mezzanine debt, to repay a $415 million construction loan, fund reserves and pay other expenses at 311 11th Avenue. The sponsors will also get back more than $115 million in equity.

Supertall, super loan | $340M | Midtown

South Korea-based IGIS Asset Management provided $340 million to refinance Extell Development’s supertall at 570 Fifth Avenue. The property comprises 13 parcels for an upcoming 78-story, glass-encased skyscraper of more than 1 million square feet.

Plans include green space and several setbacks as well as residences, Class A office space, and ground-floor retail. JP Morgan Chase was the prior lender, providing $340 million in February 2020. IGIS acquired the remaining $185 million balance on the loan last year. The refi included $9.3 million in new debt.

Canalside cash | $300M | Gowanus

Kennedy Wilson provided a $160 million loan and TYKO Capital lent $140 million for construction of Nicholas Silvers and Sam Charney’s 631,000-square-foot Gowanus development. The 668-unit project at 310 and 340 Nevins Street, designed by Fogarty Finger Architects, will have ground-floor retail and a public waterfront esplanade. Twenty-five percent of the apartments will be permanently affordable, meeting the terms of the Gowanus rezoning.

Gotham gain | $201M | Lower East Side

Wells Fargo provided a $200.5 million refi for Gotham Organization’s mixed-use tower The Suffolk. The loan coincided with Blackstone’s acquisition of a minority stake in 55 Suffolk Street from Goldman Sachs for $171.4 million, Commercial Observer reported. The 30-story building has 378 rental units — 25 percent of which are set aside as affordable — and is the first phase of a massive development.

Airport landing | $195M | East Elmhurst

Trimont provided a $195 million loan to ASAP Holdings for the LaGuardia Marriott. The 443-key hotel at 102-05 Ditmars Boulevard sold for $86.6 million in 2021 and the adjacent 1.5-acre development site sold for $17 million. ASAP said it planned a housing and a community center at the latter site.

Short sale | $193M | FInancial District

ING Capital provided a $193 million loan for Carlo Bellini’s purchase of 180 Maiden Lane in the Financial District. Bellini’s real estate firm 99c purchased the 41-story waterfront office tower for $297 million after it hit the market in January in a distress sale. The tower’s loan matured and the lender and building owners, Clarion Partners and MHP, agreed to a short sale.

SOLA score | $175M | Woodside

Apollo and Lionheart Strategic Management provided a $175 million loan to the Hakimian Organization for a mixed-use development in Woodside. Hakamian recently completed the 12-story development at 72-01 Queens Boulevard, called SOLA Woodside. Leasing of its 364 units has begun. The financing replaced a loan from Cain International.

Three’s company | $173M | Williamsburg

TPG provided a $173 million loan to a joint venture of the Loketch Group, the Joyland Group and Meral Property Group for their Williamsburg multifamily project Lorimer House. The bridge loan will finance the rest of construction of the eight-story, 270-unit building at 28 Boerum Street, Commercial Observer reported. The project also goes by the address 268 Lorimer Street. The financing replaced a loan from Slate Property Group.

Pulling back the Vale | $173M | Williamsburg

Apollo provided a $115 loan to EOS Hospitality for its purchase of the William Vale hotel. The ritzy establishment at 111 North 12th Street sold for $177 million in June, closing the chapter on one of New York’s most acrimonious bankruptcy battles. EOS provided the stalking horse bid in the bankruptcy sale.