Michael Stern’s JDS Development and Kevin Maloney’s Property Markets Group secured a $725 million construction loan from AIG and Apollo Global Management, paving the way for the rise of their supertall residential tower at 111 West 57th Street.
The $1 billion Billionaires’ Row spire will be among the tallest residential buildings in the Western Hemisphere upon completion in 2018, with a planned height of 1,438 feet and 80 stories.
AIG is the senior lender on the project, while Apollo is providing a mezzanine loan. AIG’s debt on the project stands at $400 million while Apollo’s mezzanine loan is for $325 million, sources told The Real Deal. The funding will allow JDS and Property Markets to refinance a $230 million loan provided by Annaly Capital, sources said.
JLL’s Aaron Appel, who represented the developers in the financing, declined to comment.
The combined loan expires in four years, which gives JDS and Property Markets time to sell the 60-unit building’s condos. Sales are expected to begin this fall, according to Crain’s, with the developers to begin erecting the SHoP Architects-designed tower in the coming weeks.
The lead investor in 111 West 57th Street – real estate investment firm Ambase Corp. – recently limited financing and initiated talks to reduce its stake in the project, The Real Deal reported in May. [Crain’s] – Rey Mashayekhi