JLL’s Capital Markets experts announced the firm secured approximately $100 million on behalf of Savanna and Atom Assets to fund the construction of 106 West 56th Street, a 26-story luxury boutique Class A office tower in the Plaza District.
United Overseas Bank provided the senior construction financing and Canyon Real Estate Partners provided the mezzanine financing.
Managing Director Kellogg Gaines and Executive Vice President Aaron Niedermayer led the JLL team on the financing.
“New York remains an incredibly attractive space to build high-end office product,” said Gaines. “Lenders both domestic and abroad are comfortable with the city’s dynamics, which made this a competitive process.”
Added Niedermayer: “With floor plates between 2,500 and 4,500 square feet, once built, 106 West 56th Street will offer smaller tenants the opportunity to occupy their own floor – something almost unheard of in this location and in the luxury office market.
“Despite no pre-leasing, we were able to demonstrate to lenders the depth of the luxury office market and the fact that nothing like this project exists in the market today for smaller tenants.”
Once completed, 106 West 56th Street will cater to the established luxury office market in Midtown, where 1.8 million square feet of office space with rents of at least $100 per square foot were leased in 2017.
The 90,000-square-foot, 26-story building will offer smaller tenants the unique opportunity to have their own floor, club-like amenities, Central Park views starting on the 18th floor and several outdoor terraces.