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HFZ lands $1.25B construction loan

HFZ Capital Group announced the closing of $1.25 billion in construction financing for The Eleventh, its luxury mixed-use megaproject in Chelsea.

A UK financial institution has provided HFZ Capital with the construction financing for the distinctive development located at 76 11th Avenue, between 17th and 18th streets.

HFZ principal and chief investment officer John Shannon directed the firm’s negotiations to secure the financing with the institution.

Situated on the Far West Side of Chelsea, The Eleventh — which is slated to open in 2019 — features two towers between the High Line and the Hudson River designed by Bjarke Ingels Group (BIG).

In addition to residences, Six Senses Hotels Resorts Spas will open its flagship North American urban hotel at the full-block mixed-use development project.
Six Senses is a Bangkok-based operator of a collection of five-star hospitality properties in some of the world’s most idyllic locations.

HFZ originally secured $870 million in acquisition and pre-development financing in May 2015 from a consortium of lenders, including JPMorgan, BlackRock and SL Green Realty.

Construction of The Eleventh has commenced, with completion expected in 2019. Sales of condominium residences will begin later this year.

“We’re pleased that our lender shares our vision for The Eleventh and the unique role it will play in contributing to the transformation and elevation of Manhattan’s far west side,” said chairman and founder of HFZ Capital, Ziel Feldman.

“This project captures the modern age and Bjarke Ingles helps to showcase the era in the skyline for all to enjoy. This remarkable work of art signifies the continued appeal of the High Line and its place as an iconic destination.”

The towers will be the tallest buildings in West Chelsea at approximately 300 and 400 feet tall, creating 360-degree views of the High Line, Hudson River and Downtown and Midtown Manhattan skylines. It will have 240 residences, spread throughout the two towers.

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