US real estate private debt manager Ironsand has provided a $203.5m (€182.m) floating-rate construction loan to a joint venture between SK Development and Kinsmen Property.
The financing, arranged by Walker & Dunlop Capital Markets Institutional Advisory, will fund the ground-up development of 50 Third Avenue, a 184-unit mixed-use multifamily project in Manhattan’s East Village.
The 17-storey scheme will feature 37 affordable housing units alongside 12,529sqft of ground-floor retail space at the intersection of 11th Street and Third Avenue.
Aaron Appel, senior managing director of capital markets and co-head of institutional advisory at Walker & Dunlop, said: “The East Village combines exceptionally limited new housing supply with sustained renter demand, creating compelling fundamentals for a project of this calibre.
“Vacancy in the neighborhood remains low while proximity to major employment centres and the area’s appeal to young professionals and high-income renters continue to support demand. This financing provides SK Development and Kinsmen Property Group with the capital needed to bring 50 Third Avenue to market at a time when new housing remains particularly constrained.”
Scott Shnay, principal at SK Development, said: “50 Third Avenue is positioned to become a marquee luxury multifamily development in a submarket that continues to attract institutional investment.
“The financing arranged by Walker & Dunlop allows us to execute our long-term vision for the property: delivering thoughtfully designed housing, a substantial affordable component and a high-quality residential experience in one of Manhattan’s most established neighbourhoods.”
Brian Renzi, managing principal at Ironsand, said: “50 Third Avenue presented an opportunity to finance a well-conceived development backed by an experienced ownership team in a market with significant barriers to new construction.
“The combination of market-rate and affordable housing, thoughtfully designed amenities and a prominent retail component create a differentiated project, and we were glad to support Walker & Dunlop, SK Development, and Kinsmen Property Group through construction and delivery.”
To read the latest IPE Real Assets magazine click here.
