NEW YORK CITY—Cove Property Group secured a $479 million construction loan to convert an eight-story building at 441 Ninth Avenue, between 34th and 35th streets, into a 25-story Class A office tower, named Hudson Commons.
The structure was originally built as a warehouse in 1962 and later developed into an office building in 1983, according to the Cove website. As recorded in Real Capital Analytics, in 2016 for $330 million, Cove and its joint venture partner, the hedge fund, the Baupost Group, acquired the eight-story, 423,000 square foot building that was owned and occupied by EmblemHealth as a single tenant.
Architects Kohn Pedersen Fox designed the redevelopment, which will add a 17-story structure on top of the existing building, creating a 701,364-square-foot office tower, with 14 private terraces and balconies, and basement parking for 140 vehicles. Hudson Commons will have full block frontage along Ninth Avenue.
The building will offer efficient floor plans with high ceilings and sustainable elements such as terraces and green roofs. Cove emphasizes the modern design intertwined with adaptive reuse that maintains the building's historic characteristics as an industrial warehouse will differentiate the structure from other new developments in the district.
Cove anticipates completing construction by the summer of 2019 but will be ready to receive tenants by the final quarter of 2018.
The Holliday Fenoglio Fowler debt placement team, which included senior managing director Michael Gigliotti, senior director Geoff Goldstein and executive managing director Michael Tepedino, represented Cove in obtaining the financing from Apollo Global Management.
Cove is a New York City-based owner, developer and operator of institutional-grade commercial real estate assets. Its top executives include managing partner Kevin Hoo, and partners, Thomas Farrell and Amit Patel.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
