Wells Fargo takes Essex Crossing funding to over $200M

New $80M financing package backs mixed-use building at 175 Delancey Street
December 18, 2015 09:30AM

Delancey Street Associates’ Essex Crossing development on the Lower East Side received a new, $79.5 million financing package from Wells Fargo to fund its Site 6 portion — taking the bank’s total funding of the ambitious mixed-use project to more than $200 million.

Behind the story:

175 Delancey Street
Wells Fargo

The latest financing comes in the form of a $26.4 million construction loan, of which $6 million came from the nonprofit Low Income Investment Fund, as well as $11.7 million in New Market Tax Credits to finance the commercial portion of a 15-story mixed-use building.

Wells Fargo also provided a $16.9 million construction loan and $11.5 million in Low-Income Housing Tax credits for the residential portion of Essex Crossing, with the bank eventually expected to invest a total of $25.8 million worth of the tax credits in the property, according to the New York Observer.

Goldman Sachs and Delancey Street Associates – a partnership comprised of L+M Development Partners, BFC Partners and Taconic Investment Partners – provided an additional $13 million in equity, to take the financing package to nearly $80 million.

Site 6, located at 175 Delancey Street, will house 100 senior-living apartments designated as affordable. The property is expected to feature 20,000 square feet of community space, 26,000 square feet of space for nonprofit use and 50,000 square feet of medical facility space.

The 138,000-square-foot building is slated for completion in 2017. Delancey Street Associates was selected by the city in September 2013 to develop the 1.9 million-square-foot Essex Crossing project, which will contain around 1,000 residential units – half of which will be marketed as affordable. [NYO] — Rey Mashayekhi