Greystone Bassuk Arranges $200 Million Refinance for Taconic & Mitsui Fudosan’s 392-Unit Rental Tower on Manhattan’s West Side
January 29, 2019
Greystone Bassuk, a leading New York-based real estate finance advisory firm, announced the closing of a $200,000,000 permanent loan made to a joint-venture between affiliates of Taconic Investment Partners LLC (“Taconic”) and Mitsui Fudosan America, Inc. (“Mitsui Fudosan”) to refinance 525 West 52nd Street (“525”), a 2-tower, 392-unit “80/20” mixed-income multifamily rental apartment building in the Midtown West neighborhood of Manhattan. The 10-year fixed-rate loan was originated by Wells Fargo Multifamily Capital and structured as a direct purchase of tax-exempt and taxable bonds issued through the New York State Housing Finance Agency’s (“HFA”) “80/20” Housing Program (“HFA”) with secondary market credit enhancement. The new permanent loan replaces the original $185 million construction facility provided by Wells Fargo, J.P. Morgan and M&T Bank in 2014. Greystone Bassuk, led by President Drew Fletcher, served as exclusive advisor on the transaction.
Completed in 2017, the property is located on a through-block site that extends from 52nd Street to 53rd Street between 10th and 11th Avenues in one of Manhattan’s fastest-growing residential neighborhoods. It comprises two towers over a common podium rising to 14 and 22 stories with 392 units and approximately 445,0000 gross square feet, including over 35,000 square feet of lifestyle and recreational amenities. Of the 392 units, 79 units are set aside for low income households at or below 60% of area median income (“AMI”).
Designed by Handel Architects, 525’s façade is expressed through an industrial palette of brick, metal and glass evoking the historic warehouses of Manhattan’s far west side. The building also features a series of dramatic, cascading private terraces along the western elevation, which offer residents panoramic views of the Hudson River and Midtown Manhattan. Amenities include a 24-hour staffed lobby, state-of-the-art fitness center, landscaped outdoor courtyard, 16th floor sundeck, pet care center, library, private screening room, resident storage lockers and bike storage. The property’s carefully crafted interiors feature condo-quality finishes including kitchens with custom Italian cabinetry, Ceasarstone countertops, and high-end stainless-steel appliances. All homes also include custom closets, in-unit washers and dryers, and white oak flooring.
Mr. Fletcher led the marketing of the debt, with support from Managing Director Matthew Klauer and Associate Bryan Grover. “Taconic’s disciplined investment approach and commitment to identifying and unlocking long-term value in emerging neighborhoods has made it one of New York City’s most dynamic and successful developers,” said Mr. Fletcher. “525 is yet another example and has quickly become one of the most desirable buildings in Manhattan’s burgeoning west side. We are extremely proud to have represented Taconic and Mitsui on this market-leading transaction.”
”Taconic is thrilled to deepen its long-standing relationship with Greystone Bassuk and Wells Fargo with this financing,” said Chris Balestra, Chief Investment Officer of Taconic. “This transaction required a strong partnership between New York State Housing Finance Agency, Wells Fargo, and Greystone Bassuk and we thank them for their commitment and dedication to delivering a great execution for Taconic and Mitsui Fudosan.”