The Real Deal New York

Moinian Group gets $100M-plus construction loan for Hell’s Kitchen project

Mixed-use building on West 43rd Street will have 165 units
By Eddie Small | November 01, 2017 10:56AM

Rendering of 572 Eleventh Avenue and Joseph Moinian (Credit: New York YIMBY and the Moinian Group)

UPDATED, 11:28 a.m., Nov. 2: The Moinian Group has landed a construction loan of $104 million for the mixed-use building it is planning in Hell’s Kitchen.

The loan for the 13-story, 165-unit building at 572 11th Avenue came from the New York State Housing Finance Agency and Bank of China. Moinian will make 46 of the units affordable, and the terms of the loan require the company to substantially finish construction by January 2020, according to documents filed with the Tel Aviv Stock Exchange.

The Bank of China will make the loan from HFA bond proceeds and carry an interest rate of 2.24 percent, and the loan will last for 30 months with two options to extend for an additional year, documents show. Greystone Bassuk served as debt advisor on the deal.

Joseph Moinian’s company bought the property in 2004 for $5.9 million and filed plans with the city for the mixed-use project in 2015. The building would span about 125,000 square feet, and expected amenities include retail on the ground floor, a gym on the second floor and a rooftop with two private terraces.

The Moinian Group did not immediately respond to a request for comment. The company recently hired JLL to find an investor and office tenants for its project at 3 Hudson Boulevard, which still has no anchor tenant despite a groundbreaking scheduled for Friday.

Hell’s Kitchen should also see a new project from Isaac Khafif’s MKF Realty, which is planning a 250,000-square-foot office building by the waterfront at West 46th and 47th Streets.