A joint venture equity partnership between the Gotham Organization and the Urban Investment Group within Goldman Sachs Asset Management has closed on construction financing for its development of 550 Tenth Avenue on Manhattan’s West Side between West 40th and 41st Streets.
Wells Fargo and US Bank provided a $212 million construction loan, while Lionheart Strategic Management provided $35M in mezzanine financing.
The development will be a 453-unit, 430,000 s/f, luxury mixed-use residential tower consisting of 316 market rate and 137 moderate / middle-income residences, in accordance with the Affordable New York and Hudson Yards Voluntary Inclusionary Housing Programs.
The new tower will also be home to approximately 9,000 s/f of neighborhood retail and a 26,764 s/f office condo that Gotham will convey to Covenant House, to be used as its new international headquarters for administrative office space.
The development is made possible by the JV’s purchase of Covenant House’s now vacant facility on Tenth Avenue. As developer, Gotham worked with Covenant House for the past five years to facilitate the design, financing and construction of a brand new 80,000 s/f, purpose-built facility for Covenant House New York just east of the site. This collaborative effort has resulted in a fully-funded, state-of-the-art facility for Covenant House New York.
“Facilitating Covenant House’s move into its new home is an accomplishment we are incredibly proud of,” said David Picket, President of Gotham Organization. “This is yet another example of how public-private partnerships can have a real impact on the City and better the services available to our community’s most vulnerable residents.
“We are thrilled to partner with Gotham on the next phase of this highly impactful project,” added Michael Lohr, vice president in the Urban Investment Group within Goldman Sachs Asset Management.
The market-rate and affordable residences will include a 10,700 s/f amenity suite on the 8th floor, with a focus on productivity, wellness and fitness programming. It will include a fitness center, interior lounge space designed to function as a co-working space during the day and two outdoor terraces. In addition, the 45th floor will feature a rooftop lounge and outdoor landscaped roof deck with views of Manhattan, Brooklyn, and New Jersey across the Hudson River.