The 300 East 50th Street towers were recently topped off in May this year, bringing about 400 new units of mixed-income housing. The two towers are located on East 50th Street and 335 8th Avenue in Midtown East. Rising 23 stories, 30 percent of the units constructed have been put aside for the Affordable NY program. The site assemblage was originated by Krown Capital and KRW Realty.
“This tremendous milestone, topping out two projects simultaneously, is a strong testament to our team’s incredible work to secure these sites, begin construction, and finance these deals. We are grateful for the trust and confidence placed in us by our partners and we are excited to be creating high quality, long term value for all of our stakeholders,” said MaryAnne Gilmartin, Founder and CEO of MAG Partners.
Also Read Construction goes vertical on the Moinian Group 7 Platt Street, Manhattan project
“Safanad is proud of the tremendous progress underway at 50th Street and 8th Avenue. We are strong believers in the ultimate success of these buildings and results shown to-date speak to the strength of the outstanding team we have working on-site. We look forward to continued progress as our partnership works to replicate the success achieved by Ruby in West Chelsea,” said Danny Jumblatt, Managing Director at Safanad.
Details on 335 8th Avenue
The 335 8th Avenue redevelopment replaces an aging building with a modern, contextual seven-story building designed by renowned local architects COOKFOX, who sought to bridge the historical character of Chelsea with 21st century urban living. The building has been designed to achieve Passive House and LEED Gold certifications. The $150 million project is being developed in partnership with Safanad and MetLife Investment Management. Bank OZK also provided the $73 million construction loan.
US$200 million has been provided for the construction of 300 East 50th Street, a new luxury residential tower in Manhattan. Bank OZK provided the US$95 million loan, bringing the total financing to US$200 million. Global Holdings Group also formed a joint venture with MAG Partners and Safanad in a bid to capitalize the project.
Located in the affluent Turtle Bay neighbourhood, the 23-story mixed-use tower will feature 194 units. It will have over 142,000 square feet of residential space and approximately 4,888 square feet of retail space. The unit sizes will range from one to three-bedroom apartments. Amenities include a rooftop garden and a coworking space. Additionally, a courtyard, fitness centre, pet spa and individual tenant storage.
Also Read: St. Anslem Apartments to be developed in Bronx, New York
“This project is another opportunity to bring experience from our pioneering condo developments like 15 Central Park West and the Greenwich Lane to the multifamily market,” Eyal Ofer, chairman of Global Holdings Groups said in a statement.
More details on the 300 East 50th Street development
This is not the first deal of its kind between MAG Partners and Safanad. The companies that had previously formed a joint venture agreement centred around New York metropolitan area acquisitions. The 300 East 50th Street project is also one of the last in the city to be developed using the Affordable New York tax incentive program, more commonly known as 421a. Affordable New York requires at least 30 per cent of units in a new development be affordable for low- to middle-income New Yorkers.
“Safanad is proud of the partnership’s work to capitalize the 50th Street deal in the face of an extremely challenging capital markets environment,” said Danny Jumblatt, managing director, Safanad, in a statement. “We are confident in the project’s success given the continued robust demand for new rental product in Manhattan. Moreover, the favorable supply backdrop given the expiration of the 421a program.”
Project overview
Location: 300 East 50th Street & 335 8th Avenue in Midtown East
Project type: Mixed-use
Total number of units: 400
Affordable housing units: 120
Financing: Bank OZK, Global Holdings Group
Assemblage team: Krown Capital and KRW Realty
Developers: MAG Partners, Safanad
Designers: BKSK Architects, COOKFOX
Total cost: $350 million
