The Real Deal New York

Fetner secures $183M to refi Hell’s Kitchen rental

Building on West 41st Street has 100 affordable units
By Kathryn Brenzel | March 07, 2017 01:12PM

The Victory and Hal Fetner (Credit: CityRealty and STUDIO SCRIVO)

Hal Fetner’s Fetner Properties just landed $183 million from the state and federal government to refinance a 45-story Hell’s Kitchen rental building, according to documents filed Tuesday with the city.

The state’s New York Housing Finance Agency provided $139 million to Fetner for 501 West 41st Street, a 417-unit rental building — known as the Victory — that has 100 affordable apartments. The loan is from the proceeds of tax-exempt bonds that were issued in December 2016. Those bonds — in the amount of $114.5 million and $24.5 million — replaced previous ones issued in the early 2000s, which were used to partially fund the acquisition and construction of the apartment building, according to mortgage documents.

The larger of the bonds will be used to refund outstanding principal on the original bonds, while the $24.5 million will go toward renovations and other costs, according to mortgage documents. The Federal Home Loan Mortgage Corporation (Freddie Mac) provided a $44 million loan to secure the state’s financing.

The property has an alternate address of 561 10th Avenue, records show.

A representative for Fetner did not immediately respond to a message seeking additional information.

Fetner TRData LogoTINY, which started developing properties in the 1960s, first partnered with the Durst Organization in 2005 to build a 400-unit apartment building at 125 West 31st Street, dubbed the Epic. The two decided to break up their partnership Durst Fetner Residential in 2015, dividing $740 million worth of properties.