RM Capital Management has arranged $57,500,000 of first mortgage and mezzanine construction financing for the redevelopment of the Tammany Hall Building on behalf of Reading International, Inc.
The financing will allow for the renovation and repurposing of the landmarked property at 44 Union Square into a six-story glass-domed destination retail and office building containing 73,322 s/f.
It is expected that the finished project will create three contiguous lower levels of retail and three floors of office space designed to appeal to private equity and hedge funds as well as TAMI tenants.
The property required a variance and Landmarks Commission approval to move forward with the development.
“The landmarked Tammany Hall property will be transformed through a gut renovation and the addition of a new distinctive domed glass roof. This property will anchor the northeast corner of Union Square, which has been demanding a destination property such as this. Reading’s redevelopment plan fits the bill perfectly,” said RM Capital’s co-managing partner Marc Sznajderman.
The $50,000,000 senior construction financing was provided by Bank of the Ozarks and the $7,500,000 mezzanine loan was provided by an affiliate of Fisher Brothers. The financing was placed by Sznajderman along with Romano Tio and Bo Diamond.
“As a mezzanine investor, Fisher Brothers is drawn to distinctive projects with great sponsors, which is why Reading International’s redevelopment of 44 Union Square is such a perfect fit for us,” said Fisher Brothers partner Winston Fisher. “We are pleased to play an important role in reinvigorating this important piece of New York City history while helping to further add to the vibrancy of the Union Square neighborhood.”
“The complicated nature of the construction and the scarcity of development financing in general required a lending team that understood the value of the location and a structure that met the needs of the project and the borrower,” stated Michael Buckley, of Edifice Real Estate Partners, the development manager for the project.