JV Plans 627-Unit West Side Apartment Complex

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NEW YORK CITY-The Dermot Co. and Archstone-Smith have started a joint venture partnership to develop the Mosaic, a 627-unit mixed-use development along a stretch of 10th Avenue between 51st and 53rd streets. The anticipated investment is $323.5 million.

Two years ago, the locally based Dermot was chosen by the city to redevelop the site. The plan calls for the 24-story project with two towers that also incorporates theaters, parks and retail. The Mosaic is scheduled for completion in fall of 2007. The partnership will finance its investment through $268.5 million of floating rate tax-exempt bond financing provided by the New York State Housing Finance Agency with an estimated all-in interest rate of 3.4%. Bank of America is the lead construction lender.