Rose Associates lands $98M HFA loan for Metropolis building

HFA recently announced it would stop lending to "80/20" projects

TRD New York /
Sep.September 08, 2017 05:00 PM

Rose Associates refinanced the Metropolis at 150 East 44th Street with a loan from the New York State Housing Finance Agency, records filed with the city Friday show.

The $98 million loan comes from proceeds of bond sales issued by the public lending authority. The developer first borrowed an equal amount from HFA in 2002.

Rose TRData LogoTINY partnered with Benenson Capital Partners to build the Metropolis in 2001. The building is a so-called “80/20” development, consisting of 20 percent, or 74 units, of affordable housing. Market-rate units at the property, however, can run as high as $6,300 a month for a two-bedroom.

A representative for Rose did not immediately return a request for comment.

HFA was created by the state in 1960 and issues bonds to fund mortgages for affordable development housing in New York. With the passage of Governor Cuomo’s Affordable New York bill this spring, however, the HFA announced that going forward it would only issue tax-exempt bonds to cover “100 percent affordable” projects, which would exclude 80/20s like the Metropolis.

The agency will, however, continue to refinance 80/20 projects that it first financed before the rule change, an HFA spokesperson confirmed to The Real Deal on Friday.

In June, Rose announced it had sold its condominium and co-op management arm to Terra Holdings and began raising $300 million for a multifamily fund.

Correction: A prior version of this article stated that Rose had sold its condo and co-op arm for $300 million; it sold the management arm and began raising $300 million for the fund.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Joseph Tabak

Portrait of a deal junkie: The Joseph Tabak story

Portrait of a deal junkie: The Joseph Tabak story
Matt Borstein, Deutsche Bank’s global head of CRE, is moving to Oak Hill Advisors (Photo via Deutsche Bank)

Deutsche Bank’s CRE head moves to Oak Hill Advisors

Deutsche Bank’s CRE head moves to Oak Hill Advisors
Bank OZK CEO George Gleason (Unsplash; Bank OZK)

Bank OZK’s lending up in third quarter

Bank OZK’s lending up in third quarter
WeWork CEO Sandeep Mathrani (Wikipedia Commons; iStock)

WeWork bonds, already junk, downgraded by Fitch

WeWork bonds, already junk, downgraded by Fitch
(Getty, iStock)

Cash-strapped borrowers are increasingly giving keys back to lenders

Cash-strapped borrowers are increasingly giving keys back to lenders
Craig Solomon

The REInterview: Square Mile’s Craig Solomon on his big bet on studio space, today’s capital stack and the dangers of socialism

The REInterview: Square Mile’s Craig Solomon on his big bet on studio space, today’s capital stack and the dangers of socialism
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...