UPDATED, 11:20 a.m. August 4: The Moinian Group just got one step closer to securing the financial future of its 60-story rental building at 605 West 42nd Street.
The development firm is set to close a deal with Bank of China that would provide $539 million in HFA credit enhancement bonds to pay for the construction project, sources tell the New York Observer.
The financing will be in the form of low-interest rate bonds and carry a four-year term, according to an Observer source.
The Bank of China has been meeting demand for debt financing in the New York City market in a big way lately. In March, The Real Deal reported that the bank was behind the $600 million loan for Vornado’s long-delayed luxury condo building at 220 Central Park South.
Joseph Moinian’s massive residential tower was similarly delayed. In 2012, Moinian told The Real Deal the property would no longer include condos. The developer filed a new application for the site last year, and as of this January, construction was moving along. [NYO] — Tom DiChristopher