Joseph Moinian’s The Moinian Group has received the assistance of SL Green in facilitating the closing of a $539 million loan with the New York State Housing Finance Agency by arranging credit enhancements from Bank of China and Union Labor Life Insurance Company for the construction of a major residential rental project at 605 West 42nd Street in Manhattan.
As part of its agreement with The Moinian Group, SL Green has an option to acquire up to a 20 percent stake in the property upon the completion of the project. The firm also acquired a $50 million mezzanine loan from SL Green Realty Corp.
The Moinian Group will build a first-class rental high-rise on the corner of 42nd Street and 11th Avenue in Manhattan. The tower will join Moinian’s Costas Kondylis designed Atelier condominium next door, bringing to fruition Costas Kondylis’s integrated, long-term vision for the block and neighborhood.
The project, one of several to be constructed in New York’s Midtown West development area known as Hudson Yards over the next decade, will consist of a 1.16 million-square-foot tower that will feature 1, 174 rental apartment units, of which 80 percent (939 units) will be market rate with the remainder being affordable housing units to meet the developer’s obligations under the New York State Housing Finance Agency’s 80/20 Housing Program.
There will also be a retail space and a parking area.
“This transaction demonstrates the breadth, depth and importance of the relationships SL Green has cultivated over the years through our commercial, residential and lending platforms, ” stated David Schonbraun, SL Green’s Co-Chief Investment Officer.
“It also brings to the forefront our ability to creatively coordinate an investment vehicle designed to meet the needs of all parties involved. We are extremely happy to once again partner with The Moinian Group, Bank of China, and ULLICO and we anticipate that our track record of successful ventures with these partners will continue with this transaction.”
Robert Verrone of Ironhound Management Company acted as broker on the transaction.