(To read more on the multifamily market and the debt and equity markets, click here.)
NEW YORK CITY-Two Downtown residential projects received funding yesterday to move forward with the projects. Canyon Capital Realty Advisors granted a $28.3-million senior bridge loan to Sleepy Hudson LLC and Apollo Real Estate Advisors provided $90 million in mezzanine financing to Leviev Boymelgreen Developers. Both projects are slated to be residential condominiums.
Apollo's financing is for the 20 Pine-the Collection residential development in the financial district. This is the second stage of financing for Leviev Boymelgreen Developers' 38-story project that is turning the former Chemical Bank headquarters into 408 luxury condos. The renovations began mid-2005 and the building is currently 60% contracted.
"20 Pine is among the premier residential developers in Lower Manhattan. The excellent pace of sales is a testament to the quality of the project and the expertise of Leviev Boymelgreen," says Apollo partner William McCahill in a statement.
Leviev Boymelgreen is also renovating the historic JP Morgan headquarters building, turning it into 382 condo apartments. The building is located also Downtown, at 15 Broad St.
The $28.3 million Sleepy Hollow received will be used to acquire two adjacent parcels of land totaling 7,500 sf in Tribeca. The land is located on Broadway between White and Franklin streets. Sleepy Hudson plans to build a 21-story structure which will include luxury condominiums and retail space. Pantheon Financial partnered with Canyon Capital.
"Canyon is pleased to finance this excellent project in Tribeca where land for this kind of development is in short supply," Bobby Turner, managing partner of Canyon Capital, says in a release.
High Line 519 is Sleepy Hudson's current luxury condo project, at 519 West 23 St. in Chelsea. The multifamily developer began construction on this site at the end of 2005.
Last week, Fremont Investment & Loan provided $247 million in financing for the condo project dubbed the William Beaver House. As reported by GlobeSt.com, the money will be used to fund the construction of the financial district project.
These projects are coming to light after news of a cooling condo market in much of the United States. While New York is often a horse of another color, a Q3 report by Prudential Douglas Elliman predicts a weakening market due to the development pipeline. "With another 12 to 18 months of properties in the development pipeline, it is expected that rising inventory levels will cause general pricing weakness or continued expansion in marketing time and negotiability, or both."
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