The Real Deal New York

SL Green lands $225M construction loan for Lower Manhattan apartment tower

Developer plans to start vertical construction next year on 209-unit rental and retail mixed-use building
By Rich Bockmann | November 30, 2018 12:25PM

SL Green’s Marc Holliday and the site at 185 Broadway (Credit: SL Green and Google Maps)

SL Green Realty picked up a $225 million construction loan for its planned rental tower in Lower Manhattan.

Singapore lender United Overseas Bank and the German bank Helaba provided the construction financing for the 209-unit development at 185 Broadway, SL Green announced Friday.

The company plans to go vertical on construction of the 31-story, 260,000-square-foot mixed-use building in the first quarter of next year.

SL Green managing director Brett Herschenfeld said 185 Broadway “will be the first building to be constructed in Lower Manhattan under the City’s new Affordable New York Housing program” and that the company will deliver a flagship retail store at the base.

An Ackman-Ziff team headed by Marc Sznajderman, Romano Tio and Simon Ziff advised SL Green in securing the financing.

The project will receive a 35-year tax abatement, and will include a mix of studios and one-, two- and three-bedroom apartments. Architecture firm FX Collaborative has designed the building, which is scheduled to be completed in 2021.

SL Green, the city’s largest office landlord, is mostly known for commercial projects — though the company does own a 50 percent stake in Ofer Yardeni’s Stonehenge Partners.

The developer recently paid $17.7 million to buy more than 66,000 square feet of air rights for the project from the Metropolitan Transportation Authority for the 185 Broadway assemblage.

SL Green has been assembling the site since 2015, when it paid $63.7 million to buy a pair of properties for the project. The following year, the company paid $28.5 million to buy the property at 183 Broadway.