Apollo, Affinius Capital and RXR have provided $785m (€688m) in construction funding for a residential project in the US being developed by Charney Companies, Tavros and Incoco Capital.
Asset manager Apollo and real estate investor Affinius are providing $600m in debt, while fellow real estate investor RXR is committing $185m in equity for the 27-storey 175 Third Street project, the fifth building within the Gowanus Wharf campus in New York City.
The 175 Third Street building will be the largest building in Gowanus, with approximately 1.1m sqft and nearly 1,100 residences.
David Greenburg, Affinius Capital managing director, said: “We continue to focus on backing experienced sponsors on high-quality assets where execution and alignment matter most.
“175 Third Avenue reflects both the strength of our long-standing relationship with the sponsors and the opportunity to partner with Apollo in delivering a tailored financing solution.”
Ben Gray, partner at Apollo, said: “This property represents a high-quality, large-scale multifamily development with strong fundamentals in one of Brooklyn’s fastest-growing neighbourhoods.
“The New York City housing market remains undersupplied, and we are pleased to provide a scaled financing solution to support a sponsorship team with deep local market expertise as they execute their broader vision for Gowanus Wharf.”
Russ Young, head of investments at RXR, said: “This investment reflects RXR’s commitment to delivering creative capital solutions tailored to the unique needs of best-in-class development teams.
“Charney and Tavros have built something special at Gowanus Wharf, and we look forward to helping bring their vision for 175 Third Street to life.”
Justin Pelsinger, partner and COO at Charney Companies, said: “Securing this financing with Apollo, Affinius and RXR validates both the strength of 175 Third Street and our long-term commitment to this waterfront community.
“We are excited to begin construction on this transformative building alongside the canal, and we expect it, and our other properties at Gowanus Wharf, to enhance the dynamic of living and lifestyle in the neighbourhood.”
Colin Rankowitz, partner at Tavros, said: “175 Third Street will be Gowanus’ most significant development and one of the most prominent in both Brooklyn and New York City overall.
“The asset represents the capstone of a thesis we’ve spent nearly ten years building and will result in one of the most significant deliveries of affordable housing by any single building in the city.”
Fa Park, CEO and founder of Incoco Capital, said: “We are excited about our continued partnership with both Tavros and Charney Companies and our joint vision for 175 Third Street.
“With market-leading retail partners already signed on and an impressive, innovative design from Bjarke Ingels, we know this project will be recognised worldwide.”
JLL’s debt team arranged the financing.
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