Tishman Speyer snags $380M financing package for 11 Hoyt, secures construction manager
iStar provided $40M in mezz debt for the 490-unit condo project
JPMorgan Chase is the lender of record on a roughly $340 million construction loan, half of which Starwood Property Trust took on its books. A source said that real estate investment trust iStar also chipped in a $40 million mezzanine piece for the project, which sits adjacent to the Macy’s department store.
The Real Deal first reported in November that JPMorgan was in talks to provide Tishman Speyer with the mortgage. At the time, the developer was seeking a floating-rate construction loan with a five-year term and the option to extend, but the most recent terms of the deal were not immediately clear.
The project’s total cost has been pegged at $685 million, so the debt package carries a roughly 55 percent loan-to-value ratio.
A JLL team led by Aaron Appel and Max Herzog negotiated the financing, which closed last month.
The developer’s most recent plans call for 490 residential condos, up from 475, according to documents filed with the New York State Attorney General’s office in late March. The developer tapped Triton Construction as the project’s construction manager. Lance Franklin, Triton’s co-CEO, indicated that the company began foundation work in November and recently started on the building’s superstructure.
It’s been a busy month for Tishman Speyer, which has been advancing its other major project, the Spiral. Earlier this month, the Rob Speyer-led firm secured Pfizer as an anchor tenant for the $3.7 billion Hudson Yards office tower. In conjunction with the 20-year, 800,000-square-foot lease, the developer locked down a $1.8 billion mortgage from the Blackstone Group, marking one of the largest such construction financings ever in Manhattan.
Representatives for Tishman Speyer, JPMorgan, Starwood and JLL declined to comment, while a representative for iStar did not immediately respond to a request for comment.