JLL arranged $251 million in equity and debt for CBSK Ironstate for the acquisition and development of 646 11th Avenue, a luxury condominium development planned for Hell’s Kitchen.
The firm raised $70 million in equity from an institutional investor and secured $181 million in construction financing from Deutsche Bank AG.
Vice Chairman Aaron Appel, Managing Directors Keith Kurland and Jonathan Schwartz, Executive Vice President Mark Fisher and Associate Douglas Baillie executed the transaction on behalf of JLL.
“Hell’s Kitchen is one of the most vibrant communities in Manhattan and has recently experienced rapid development,” said Appel.
“The future of the area is being re-shaped with around 17 million square feet in retail, commercial and residential space underway. This transaction offered the lenders an opportunity to finance one of New York’s most experienced residential developers in a project with significant risk-mitigation.”
The 12-story 646 11th Avenue is located on the east side of the avenue and spans the entire block front between 47th and 48th Streets.
The project comprises approximately 161,000 net sellable residential square feet, approximately 40,000 rentable square feet of pre-sold retail space, 8,000 square feet of residential amenity space and 60 for-sale storage units.
CBSK Ironstate is a joint venture formed by Charles Blaichman’s CB Developers, Scott and Abe Shnay’s SK Development and Michael and David Barry’s Ironstate Development.
The partners have developed more than $1.0 billion in projects together, including 10 Bond Street, 301 East 50th Street, Chelsea 29 (221 West 29th Street), The Frontier (200 East 39th Street), The Lindley (591 Third Avenue), POD Brooklyn and The Jefferson (211 East 13th Street).