Ares Management and Douglaston Development have scored a $560 million loan to use for 3ELEVEN, a multifamily property in New York City.
The funding for the two real estate firms is for a 60-story luxury apartment tower that comes with 938 total units. The property is located at 311 11th Avenue, and is just south of the Hudson Yards district in Manhattan. The apartment complex covers the west of 11th Avenue to the west of both 29th and 30th streets.
Options for tenants range from a studio to a three-bedroom apartment. Some amenities included are a fitness center, theater, conference rooms, outdoor areas, yoga studio, music rooms, pool, and a terrace on the 42nd floor.
The project was completed in 2023 and is now 99 percent leased.
The loan was arranged by both Newmark Group and Greystone Capital Advisors. The financing will pay back the original HSBC construction loan. Jordan Roeschlaub, Jonathan Firestone, and Nick Scribani represented Newmark. They teamed up with Greystone’s Bryan Grover, Drew Fletcher, and Paul Fried.
Newmark and Greystone both noted in a statement that 3ELEVEN’s location “offers proximity to high-end shops and restaurants, the Hudson River and the High Line elevated park.”
“Securing favorable financing terms for this complex transaction demonstrates our team’s unique ability to navigate the complexities of the market and deliver outstanding results for our clients,” Firestone, Newmark’s co-president of global debt & structured finance, said.
Manhattan’s multifamily sector and mixed-use saw some positive development in the second quarter, as sales surged by 45 percent from the first three months, according to a report from Avison Young. While average prices fell by eight percent, median cap rates were up 52 basis points in the three months through June.
Plus, property sales enjoyed a 13 percent boost to $2.4 billion. That figure was also up 20 percent year-over-year.