Real Estate Weekly
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Debt & Equity

REEC bags $110M to build East Village office building

Madison Realty Capital (MRC) has provided a $48.0 million senior loan for the funding of a $79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place in Manhattan’s East Village.

Hana Financial Group, a South Korean financial services company, provided Real Estate Equities Corporation (REEC), a local developer with an additional $31.1 million of mezzanine financing to fully capitalize the project.

REEC entered into a 99-year ground lease for the property in 2017. It is located at the corner of St. Mark’s Place and 3rd Avenue in a section of the East Village that has seen significant growth in demand for office space from a mix of tech, finance, law, and family office tenants in recent years.

In June, the Landmarks Preservation Commission granted approval to construct an office building designed by Morris Adjmi Architects.

That plan shows a 54,000 s/f building with eight stories of commercial office space, ground-floor retail and a single cellar level located on the corner of Third Avenue and St. Mark’s Place. Outdoor terraces would be positioned at the building’s fifth, eighth, tenth, and rooftop levels.

However REEC has filed a private application with the city seeking a special permit to transfer approximately 8,300 s/f from the landmarked 4 St. Marks Place and to modify the height and setback requirements to facilitate a ten-story commercial building at 3 St. Marks Place. REEC’s development plans include a fitness center and roof deck.

That proposal has still to be reviewed by the City Planning Commission.

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