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SL Green Realty closes on $225M construction loan for new tower

SL Green Realty Corp. announced the completion of two major milestones to start the vertical construction of 185 Broadway, a ground-up, 31-story, 260,000 s/f mixed-use building in Lower Manhattan.

The firms has acquired 66,186 zoning square feet of development rights from the owner of the adjacent corner lot, at 189 Broadway.

Through this transaction, SL Green also obtained a light and air easement and cantilever right over 189 Broadway for the purpose of permitting lot line windows and maximizing efficient residential floor plates.

SL Green recently closed on $225 million of construction financing for 185 Broadway with United Overseas Bank Limited and Helaba.

The floating rate facility has a term of three years, with two one-year extension options.

Upon completion, the building will include approximately 209 rental units, of which 30 percent of the units will be affordable (63 units), with a mixture of studio, one-bedroom, two-bedroom and three-bedroom units.

The project will enroll in the Affordable New York Housing Program, and, as a result, will receive a 35-year property tax abatement.

Demolition of three parcels — 183 Broadway, 187 Broadway and 5-7 Dey Street — has been completed. SL Green plans to complete foundations in December 2019, and receive a Temporary Certificate of Occupancy for the building in March 2021.

Architecture firm, FX Collaborative, will design 185 Broadway, which will wrap around the corner of Broadway and Dey Street across from the Fulton Transit Center.

Two floors of flagship retail and three floors of commercial space will be created, each with dedicated entrances on Broadway and Dey Street, respectively.

Brett Herschenfeld, managing director of SL Green, commented, “We are proud to have our vision for the 185 Broadway assemblage realized on two fronts: 1) we will be the first building to be constructed in Lower Manhattan under the City’s new Affordable New York Housing program, and 2) we will deliver an iconic flagship retail store at the building’s base, directly in between the Fulton Transit Center and the World Trade Center, an opportunity which will certainly attract the very best global retailers.”

An Ackman-Ziff team led by Marc Sznajderman, Romano Tio and Simon Ziff acted as capital advisor on behalf of SL Green for the financing.

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