The Real Deal New York

Mitsui Fudosan buys majority stake in Taconic’s Hell’s Kitchen project

Development will have unusually high affordable housing component

June 08, 2015 08:30AM

525 West 52nd Street

Charles Bendit and rendering of 525 West 52nd Street in Hell’s Kitchen

Mitsui Fudosan, one of Japan’s biggest real estate companies, has bought a majority stake in Taconic Investment Partners’ 525 West 52nd Street.

The $330 million development in Hell’s Kitchen will include a large affordable housing component, the Wall Street Journal reported. The residential complex will include two towers with a total of 392 rental units, according to the newspaper.

About 80 apartments will be affordable. The building is also subsidizing an affordable housing project down the block. The two projects have about 40 percent of the units set aside for low-income tenants, as opposed to the more customary 20 percent.

Last month, Taconic secured a $200 million loan from Wells Fargo Bank and the New York State Housing Finance Agency to finance the residential development on the Far West Side.

“It’s pretty unique,” Charles Bendit, co-chief executive of Taconic, told the Wall Street Journal.

The companies hope to finish 525 West 52nd Street in 2017, according to the newspaper.

Late last year, Mitsui paid roughly $259 million for a stake in a $1.4 billion office tower at 55 Hudson Yards, which it co-owns with the Related Companies and Canadian pension investment firm Oxford Properties. The Japanese firm also owns 1251 Sixth Avenue, which it bought in the 1980s. [WSJ] — Claire Moses