The Moinian Group has closed on a $103 million construction loan for its new West Side apartment tower at 572 11th Avenue.
Greystone Bassuk negotiated the loan with Bank of China, New York Branch on behalf of Moinian.
The loan was structured as a letter of credit-enhancing taxable variable-rate bonds issued by The New York State Housing Finance Agency.
Notably, the project was originally slated to receive tax-exempt bond financing and tax credits under the old HFA “80/20” Program, but was required to pivot and close under a 100% taxable execution when the Agency unexpectedly changed its funding policy in June.
The new program still provides a full mortgage recording tax exemption, which preserves a valuable and important benefit for the borrower.
572 11th Avenue is located diagonally across the street from Sky Residences, Moinian’s flagship 1,175-unit luxury rental development at 605 West 42nd Street. Residents of the new building will have access to Sky’s services and amenities. Once complete, the new 13-story tower will comprise 185,000 gross square feet with 164 units and over 25,000 s/f of street-level and below-grade retail. 25 percent of the units (46 apartments) will be set aside for low and moderate income households pursuant to the new 421-a Program and the HPD Inclusionary Housing Program.
“The Moinian Group has been a driving force in the transformation of the Far West Side for over a decade, and this project is yet another example of how Joe Moinian continues to set the bar for luxury residential living in Manhattan,” said Drew Fletcher, President, Greystone Bassuk who arranged the loan on behalf of Moinian with CEO Richard Bassuk,
Joseph Moinian, CEO and Founder of The Moinian Group, said, ”The Moinian Group is thrilled to deepen its relationship with Bank of China, HFA and HPD with this exciting development. This project is the culmination of our multi-phase development that started with the Altelier condominiums over a decade ago, and we are extremely proud to have participated in the rebirth of the Far West Side as one of New York City’s most vibrant neighborhoods.”