$680M Loan Closes for Downtown Tower Build

NEW YORK CITY-The New York City Housing Development Corp. closed a $680 million construction loan with an affiliate of Forest City Ratner. The project will use Liberty Bond and taxable bond proceeds for the new construction of a 904-unit apartment tower in Lower Manhattan located at 60 Beekman St.

The Liberty Bond issuance represents the last of HDC’s allocation. The New York State Housing Finance Agency also contributed $13.9 million from its Liberty Bond allocation to make this exciting development possible. “Beekman Tower is among HDC’s most notable financings to date” according to Marc Jahr, president of the HDC. “I’m confident that this striking Frank Gehry designed building will provide a powerful impetus to the continuing transformation of Lower Manhattan into a vibrant live-work neighborhood.”

The Liberty and taxable bond proceeds will be used by FC Beekman Associates, an affiliate of Forest City Ratner, to construct 904 residential units and approximately 1,500 sf of retail space. Beekman Tower will also include a separately financed ambulatory care center to be operated by the New York Downtown Hospital; a below grade 175-space parking garage; and a pre-K through 8th grade Public School to be owned and operated by the New York City Department of Education.

Downtown

Deputy Mayor for Economic Development Robert C. Lieber, says in a prepared statement that “in addition to the new building itself providing housing, parking and a new school Downtown, the transaction will also provide much-needed funding for the creation of affordable housing, and I congratulate and thank HDC for helping to get it done.”

According to a prepared release, the residential Liberty Bond program helped jump start the transformation of the financial district into a 24/7 community through projects like the Beekman Tower and has also generated significant funds for affordable housing development. The Beekman Tower Liberty Bond financing generated approximately $6 million in fees that HDC will devote to financing affordable housing. To date, HDC has constructed 467 affordable housing units using approximately $31.4 million in fees derived from previous Liberty Bond transactions.