The Real Deal New York

Taconic, Mitsu Fudosan land $200M loan for Hell’s Kitchen apartment building

Wells Fargo provides 10-yr debt on mixed-income project through the state’s Housing Finance Agency
By Rich Bockmann | January 29, 2019 01:20PM

Taconic’s Charlie Bendit and Wells Fargo’s Timothy Sloan with 525 West 52nd Street (Credit: Handel Architects)

Nearly two years after finishing construction on one of Hell’s Kitchen’s largest rental buildings, Taconic Investment Partners and Mitsui Fudosan America have taken out permanent financing for their Far West Side project.

The joint-venture partners locked in $200 million in long-term debt for the 392-unit, mixed-income apartment building at 525 West 52nd Street that they completed in 2017, according to the brokers who arranged the financing.

Wells Fargo Multifamily Capital provided the fixed-rate debt through a combination of tax-exempt and taxable bonds issued by the New York State Housing Finance agency’s 80/20 program.

Greystone Bassuk president Drew Fletcher, who arranged the debt with his colleagues Matthew Klauer and Bryan Grover, said the property “has quickly become one of the most desirable buildings in Manhattan’s burgeoning west side.”

The new debt replaces $185 million in construction financing that Wells Fargo, JP Morgan and M&T Bank issued the developers in 2014 through the Housing Finance Agency.

The property consists of two towers standing 14 and 22 stories above a shared podium, spanning roughly 445,000 square feet. Of the 392 rental units, the developers set aside 79 apartments for renters earning 60 percent of the area median income or less.

The Handel Architects-designed building features amenities like a fitness center, sundeck, pet-care center and cascading private terraces that offer views of the Hudson River and Midtown.