Natixis has provided an $86.25 million construction loan for for the built-to-suit Memorial Sloan Kettering office development at 330 East 62nd Street on the Upper East Side.
Brad Domenico and Kathy Anderson of Progress Capital negotiated the construction loan for YYY 62nd Street LLC, a joint venture between Joy Construction and Maddd Equities, to construct and fit out the new seven-story office building.
Loan proceeds will be used to pay off existing debt and to provide capital to complete the 110,727 s/f, Class A building which is 100 percent pre-leased to Memorial Sloan Kettering Cancer Center for an initial term of 30 years.
Memorial Sloan Kettering intends to use the building for administrative offices. The property sits in the center of Memorial Sloan Kettering’s Upper East Side presence and is within walking distance of its main hospital campus located at 1275 York Avenue.
Memorial Sloan Kettering Cancer Center is the world’s oldest and largest private cancer center with a total staff of 15,697 and operating revenues of $3.094 billion in 2016.
Joy Construction and Maddd Equities are repeat clients of Natixis.
“We are very pleased to have worked with Natixis and Progress Capital on this financing,”said Eli S. Weiss, managing member of YYY 62nd Street LLC.
“With our diverse development platform of multifamily, hospitality, workforce housing and community facility projects, it is crucial we have lenders and advisors who are able to provide creative and value add capitalizations to help us execute on our business plans.”
The loan is a 24-month interest-only construction loan with two one-year extensions floating over LIBOR. Loan terms include limited recourse that burns off once the building is occupied. The loan represents a 90 percent loan to project cost ratio with a flexible prepayment option.
Domenico and Anderson negotiated terms of the loan with Jared Zimmel, of Natixis. Doug Heitner, Isaac Stern and Abe Seaman-Baldaro of Kasowitz Benson and Torres LLP’ represented the borrower while Ralph Arpajian, Daniel Lisk and Jeremy Chubak of Haynes Boone LLP represented Natixis throughout the closing process.