Alchemy-ABR is continuing its run of massive Midtown construction loans.
Alongside co-developer JJ Operating, the firm received $183 million in financing from PacWest and Square Mile Capital Management to expand its mixed-use site at 258-278 Eighth Avenue in Chelsea, according to the Commercial Observer.
JJ Operating purchased the property about four years ago for just over $107 million and filed permits in April to demolish a structure at the site, which currently includes a CVS Pharmacy and a permanently closed New York Sports Club. Development of a 190-unit, 210,000-square-foot residential mixed-use project is expected to begin in the first quarter of next year.
Along with apartment buildings at the new development, the 33,000 square foot ground floor space will house a Target, which pre-leased 28,000 square feet in November. Other amenities are expected to include a resident lounge, rooftop terrace, fitness center and speakeasy bar.
This is the second time Alchemy-ABR has secured a major construction loan in recent weeks. In June, Alchemy-ABR and equity partner Cain International landed $250 million in financing for a 26-story spec office tower at 123-141 West 57th Street..
[CO] — Holden Walter-Warner