Construction Financing Secured for Mixed-Use Complex in Midtown Manhattan
Developer Chess Building has successfully secured $79 million in construction financing to proceed with the development of a 28-story mixed-use complex located in Midtown Manhattan. This financing arrangement was facilitated by S3 Capital, a notable player in real estate finance.
Details on the Financing Deal
The project marks one of the final endeavors supported by the now-expired 421a tax reduction policy, which was implemented to encourage the development of affordable housing across New York City. This statewide subsidy offered substantial tax breaks to developers who allocated a certain percentage of their units for affordable housing. In this particular case, the funding arrangement includes an impressive framework of 35 years of tax abatements, demonstrating a significant incentive for developers within the market.
Location and Project Specifications
The upcoming residential project will be situated at 250 West 49th Street, strategically placed between 7th and 8th avenues in Manhattan’s bustling theater district, near the iconic Times Square. Upon completion, it is expected to host 138 rental units and approximately 2,500 square feet dedicated to retail space on the ground floor, catering to both residents and the vibrant community surrounding the area.
Amenities Provided in the New Development
In addition to the residential and retail offerings, the new complex aims to feature a variety of amenities that enhance the living experience for its tenants. These amenities will include an outdoor movie theater, a rooftop lounge, a tenant lounge complete with a pool table, a fitness center, a golf simulator, and a tranquil Zen garden. Such facilities are designed to promote a sense of community and provide leisure options for residents.
Partnership and Collaboration
Robert Schwartz, co-founder and managing principal of S3 Capital, expressed enthusiasm about the partnership with Chess Building, reflecting on their previous collaborative efforts. One notable project they previously worked on together was the Mott Haven Arch, a substantial 25-story rental building comprising 430 units located in the Bronx. According to Schwartz, this new venture exemplifies S3 Capital’s commitment to backing innovative developments led by reliable and experienced sponsors.
Company Responses and Future Prospects
While Chess Builders did not respond to inquiries regarding the current project, the financial backing and strategic location underscore the potential for long-term success. As New York City continues to evolve, the integration of mixed-use developments is likely to play a vital role in accommodating the growing urban population and providing necessary services within the community.
Conclusion
The securing of $79 million in construction financing for a mixed-use complex in Midtown Manhattan highlights ongoing efforts to bolster urban living while maintaining a focus on affordable housing through tax incentives. The anticipated development at 250 West 49th Street promises to enrich the local community with new residential options and retail opportunities, further enhancing the vibrancy of the theater district and surrounding areas.
FAQs
What is the 421a tax reduction policy?
The 421a tax reduction policy in New York offers tax incentives to developers who incorporate affordable housing units in their projects, making it more financially feasible to provide such options in expensive urban settings.
What types of units will the new development offer?
The new development will feature 138 rental units, including various sizes and configurations to cater to a diverse range of potential tenants.
What amenities will be available to residents?
Residents can expect a range of amenities, including an outdoor movie theater, rooftop lounge, tenant lounge with a pool table, fitness center, golf simulator, and Zen garden.
Who are the key partners in this development?
The key partners in this development include Chess Building as the developer and S3 Capital, which provided the construction financing.
Where is the project located?
The project is situated at 250 West 49th Street in Midtown Manhattan, between 7th and 8th avenues, close to Times Square.
