New Residential Tower in Midtown South Secures $275 Million Financing
A significant milestone in New York City’s real estate landscape has been reached as a joint venture between Sioni Group and AB & Sons has successfully secured $275 million in construction financing. This funding is designated for the long-anticipated residential development at 986 Sixth Avenue, situated in the bustling Midtown South area.
Details of the Development Project
The construction financing was provided by Affinius Capital and InterVest Capital Partners. The project will feature a striking 72-story multifamily and condominium building, comprising 311 units in total. The development will include 284 apartments and 27 condominiums, with completion expected in 2026.
Quotes and Stakeholder Insights
Expressing enthusiasm about the project, Perry Katz, Senior Vice President at Affinius Capital, stated, “We are thrilled to participate in this skyline-defining project and to further strengthen our relationship with Sioni Group and AB & Sons, experienced New York City-based developers, owners and operators.”
Financing Journey
This financing comes nearly three years after the project sponsors nearly secured $350 million in loans. Rising interest rates during that period posed challenges to the initial financing plans, prompting delays.
Development History
The journey towards this development has been extensive, beginning in 2007 when Sioni Group and AB & Sons commenced property acquisitions in the Midtown South area. Their strategic purchases included a vacant hotel for approximately $54.3 million and a 21-story office building for $49 million, both near the future site of the residential tower.
Transaction Coordination
The financing arrangement was facilitated by Henry Bodek from Galaxy Capital, showcasing the collaborative efforts required to bring such a significant project to fruition.
Reactions from Involved Parties
Representatives from Affinius Capital, InterVest Capital, Sioni Group, and AB & Sons have not yet responded to inquiries for further comments.
Contact Information
For media inquiries and more details, you can reach out to Andrew Coen at ac***@co****************.com.