Rockrose lands $255M in financing for Hudson Yards project

Developer filed plans in 2018 to build a 600-unit residential tower at West 38th Street site, with an office tower to come later

Renderings of 555 West 38th Street and Rockrose Development's Justin Elghanayan (Credit: Rendering by Pelli Clarke Pelli)
Renderings of 555 West 38th Street and Rockrose Development's Justin Elghanayan (Credit: Rendering by Pelli Clarke Pelli)

Rockrose Development appears to have the money it needs to construct a long-awaited rental tower across from the Jacob Javits Center in Hudson Yards.

According to city records, the developer received a $255 million construction financing package from Wells Fargo for 555 West 38th Street, the first phase of a two-building project set between 10th and 11th avenues in Hudson Yards.

The firm, led by Henry Elghanayan and son Justin Elghanayan, began assembling the West Side site nearly 20 years ago. The plot’s zoning allowed for a building spanning 500,000 square feet as-of-right, but in 2012 the developer struck a deal to pay into funds to finance public infrastructure improvements in exchange for additional square footage. The master plan will total 1.6 million square feet.

In 2018, Rockrose filed plans to build the first part of the development, including a 600-unit residential tower at the West 38th Street site. The 400,000-square foot, 51-story tower would be designed by Pelli Clarke Pelli Architects. The second phase of the development would include a 1.2 million-square-foot office tower. Plans for an office tower have not yet been submitted.

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Rockrose said last year that although the firm would provide 100 percent of the equity for the project, it would seek debt later. The rental building also receives a 421a tax exemption in exchange for keeping 25 to 30 percent of the apartments affordable for a set period of time. In 2018, Justin Elghanayan said 45 percent of the units would be studios, 45 percent would be one bedrooms, and 10 percent would be two bedrooms apartments.

Rockrose has experience developing in Hudson Yards. The firm developed a 394-unit property at 455 West 37th Street and a 835-unit property at 505 West 37th Street.

Further details on the financing package were not immediately available. Rockrose declined to comment, and Wells Fargo did not immediately return a request for comment.

The first phase of the project is expected to be delivered in fall of 2022.