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.
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“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.”
