Hudson, Related land “complex” financing package for next Riverwalk building

Latest project at Roosevelt Island complex will consist entirely of affordable units

TRD New York /
Jan.January 16, 2019 07:30 AM

From left: Hudson’s David Kramer, Related’s Jeff Blau and rendering of the Riverwalk apartment complex at 460 Main Street (Credit: Getty Images and CityRealty)

Hudson Companies and Related Companies secured about $123 million in debt from a trio of public agencies and a bank to build the next phase of their Riverwalk development on Roosevelt Island.

Various government agencies and Citigroup’s community capital division provided the financing for the 340-unit residential project, which will consist entirely of affordable rental units.

The New York City Department of Housing Preservation and Development provided a $20.29 million permanent subsidy loan, while the New York City Housing Development Corporation gave $12.9 million in tax-exempt bonds. The New York State HCR through its Homes for Working Families program loaned $12.5 million.

Meanwhile, Citi provided a $74.6 million construction loan and letter of credit for the tax-exempt bonds as well as a $3 million subsidy loan. The bank also committed to buying the tax credits from the project’s tax credit syndicator, WNC.

In a statement, Citi’s Tricia Yarger called the financing structure for the project “complex.”

Sixty percent of the 340 rental units will be permanently affordable, and the rest will be affordable for 40 years. The units will be available to families with household incomes ranging from 40 to 165 percent of the area median income.

The developers in 2017 filed plans to construct the 21-story, $135.8 million project, the eighth of nine buildings in the complex.

Construction began this month and will be open to residents in 2021, according to the release. The work also includes the renovation of the Firefighters Field park.

Roosevelt Island has experienced a surge in development, mostly because of the 2.1 million-square-foot Cornell Tech campus that’s under development. Real estate experts expect property values on the island to rise, as it transforms from an almost suburb to a tech hub.


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
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
529 Fifth Avenue and Silverstein Properties' Larry Silverstein (Google Maps; Getty)

Silverstein gets $171M refi for 529 Fifth Avenue

Silverstein gets $171M refi for 529 Fifth Avenue
Lantern Real Estate co-founder Tal Bar-Or and a rendering of the project

Williamsburg building gets $41M bridge loan after Brooklyn Boulders bails

Williamsburg building gets $41M bridge loan after Brooklyn Boulders bails
arrow_forward_ios

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

Loading...