SL Green Realty Corp. has closed on a $125 million construction loan and formed a new joint venture to build its new Pace University development at 126 Nassau Street in the Financial District.
Manhattan’s largest office landlord announced that it has fully capitalized the new property by entering into a partnership agreement with a real estate fund managed by Meritz Alternative Investment Management.
The fund holds an 80 percent interest in the new joint venture, with SL Green retaining a 20 percent interest and oversight of the development; and
The REIT closed on $125 million construction financing facility provided by The Bank of China.
“Securing both a joint venture partner and construction facility for this project is a vote of confidence in SL Green’s ability to deliver best-in-class new development to New York City’s most prominent users. It also further solidifies Lower Manhattan’s long-term status as a commercial, academic, retail and residential hub.” said Harrison Sitomer, Senior Vice President of SL Green.
“Today’s announcements are the next step in the execution of our development strategy, and we look forward to delivering another world class facility to Pace in 2023.”
126 Nassau Street is part of Pace University’s NYC Master Plan to revitalize its Lower Manhattan campus. Plans for the new 215,000 s/f building include a new residence hall, a modern dining facility, a state-of-the-art library and learning center, as well as new classrooms, and academic and common spaces.
The college acquired a 30-year leasehold for the entire development adjacent to Pace’s property at 41 Park Row.