601 W. 29th St. rendering courtesy of FXCollaborative
NEW YORK CITY—Douglaston Development and Ares Management Corporation have formed a joint venture to build a massive residential complex in Manhattan's Far West Side, where Hudson Yards meets West Chelsea. The 931-unit luxury, mixed-use residential development will take up a full block on Eleventh Ave. extending between W. 29th and W. 30th streets, with the address of 601 W. 29th St.
Greystone has arranged equity and construction debt for the project. A syndicate of banks led by HSBC, with co-lenders Bank of China and Landesbank Hessen-Thüringen (also known as Helaba), provided a $415 million construction loan. Santander Bank and Raymond James Bank also participated in the loan facility.
Greystone's structured finance group, led by president Drew Fletcher advised the owners in arranging a full capital stack for the development. Paul Fried led the effort to raise joint venture equity, with Matthew Hirsch and Bryan Grover, who also worked on the debt raise. Ken Lore from Katten Muchin Rosenman LLP and Shapiro & Gellert PLLC served as the joint venture's legal counsel.
Douglaston and Ares also closed on the acquisition of approximately 120,000 square feet of air rights from Hudson River Park, with proceeds going towards funding neighborhood park improvements.
“It took multiple years to get this very complicated nearly one million square-foot site rezoned and assembled,” says Douglaston's chairman Jeffrey Levine.
Ares Real Estate Group partner Andrew Holm says his company is continuing to invest in high-growth urban areas with the project. “Ares has consistently focused on the development of core, high quality real estate in gateway markets. With a prime location in a rapidly transforming neighborhood, this project exemplifies many attributes of our investment criteria.”
Designed by FXCollaborative, the project includes 50,000 square feet of amenities including a fitness center, outdoor terraces and a pool. Of the 931 residential units, 697 will be market rate and 234 will be affordable housing, reserved for tenants who earn 60% of the area median income. The project will have 168 parking spaces and 15,000 square feet of retail. Demolition has begun and the complex is expected to open in 2023.
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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.
