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Delancey Street Associates close on $200M loan for 180 Broome Street

Delancey Street Associates (DSA) has closed on financing for the construction of 180 Broome Street, a 26-story mixed use building that will include 175,000 s/f of Class A office space, 263 units of mixed-income rental housing and 27,000 s/f of retail space, which includes a portion of the subgrade Market Line.

Essex Crossing is being developed by DSA, which comprises BFC Partners, L+M Development Partners, Taconic Investment Partners and Goldman Sachs. Site 4 will be the sixth of nine sites in the Essex Crossing project to close and begin construction.   

Construction will be funded through a $200 million loan from Wells Fargo and M&T Bank, as well as through equity from DSA and Goldman Sachs Urban Investment Group. Construction is expected to begin this month and the building is scheduled to open in 2020. The building’s total development cost is expected to be $300 million. 180 Broome, also known as Essex Crossing Site 4, was designed by Handel Architects.

“With mixed-income housing, Class A office space, retail and a section of the Market Line all under one roof, what was once a parking lot will soon be a dynamic place to live, work and visit right in the heart of Essex Crossing ” said Isaac Henderson, Essex Crossing Project Manager at Delancey Street Associates. “We thank our partners for their shared commitment to the mixed-use, mixed-income model that is so critical to Essex Crossing’s success.”

Essex Crossing will feature 1,079 units of housing, a public park, retail, medical center, senior center and the new home of the International Center of Photography.

“With Site 4, we’ll be seeing an infusion of office space and the jobs that go with it in the Lower East Side,” said Duane Mutti, Senior Vice President, Community Lending & Investments at Wells Fargo.  “It’s an important part of the project, along with affordable residential and retail opportunities.”

“Essex Crossing continues to be a tremendous urban redevelopment success story and we look forward to seeing this new phase of retail, office and residential units added to the New York City market,” said M&T Bank Group Vice President for Commercial Real Estate Lending Matt Petrula. “We succeed as a bank by helping our customers and communities succeed.”

“We are thrilled to see this next phase of Essex Crossing continue into construction. 180 Broome has an ambitious mix of uses that will provide quality jobs, affordable housing and first class amenities to the Lower East Side community,” said Margaret Anadu, managing director and head of the Goldman Sachs Urban Investment Group. “To date we have committed almost $500 million to Essex Crossing, a project that was designed in collaboration with the community and is only made possible through unprecedented levels of collaboration between the public and private sector.  We are excited to join our partners in celebrating this project which will serve as a model for community development.”

“Decades in the making, Essex Crossing is bringing new economic and community resources to the Lower East Side,” said NYCEDC President James Patchett. “With this most recent closing, DSA will help provide high quality office, retail and housing space to the neighborhood, creating more good jobs for local residents.”

180 Broome (pictured top) will feature 10,000 square feet of ground floor retail, 175,000 square feet of Class A office space on floors 2-5 and 263 rental units on floors 6-26. The amenity rich office space will include floor-to-ceiling windows on all four sides highlighting views of both Midtown and Lower Manhattan skylines, high ceilings, bike rooms with showers, exclusive outdoor terraces and lobbies, and triple-height atrium gathering and event spaces. The residential portion will comprise an amenity floor, 142 market-rate rental units and 121 affordable rental units.

Finally, the building’s cellar will house a segment of the Market Line, an expansive, bazaar-like marketplace spanning 700 feet along Broome Street. At 150,000 square feet, it will house an eclectic mix of food, fashion and culture – from markets and prepared food, to a beer hall, to gallery and performance space. The Market Line will also adjoin the new home of the 77-year-old Essex Street Market. The first phase of the Market Line and the new Essex Street Market will also open this year in 115 Delancey Street (Essex Crossing Site 2). In the meantime, the current Essex Street Market remains open for business. The Market Line will also connect directly to a 14-screen Regal Cinemas in 115 Delancey Street.

Essex Crossing comprises 1.9 million square feet of residential, commercial, and community space. The nine sites on six acres had sat mostly vacant since 1967 and represent one of the most significant urban renewal developments in the history of New York City. The project will include 1,079 units of housing (51 percent of which will be affordable), a 15,000-square foot public park, Splitsville Luxury Lanes, Trader Joe’s, Target, NYU Langone’s Joan H. and Preston Robert Tisch Center at Essex Crossing, and a senior/community center run by Grand Street Settlement – all of which will open in 2018 – and the new home of the International Center of Photography, which will open in 2019.

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