Developers of American Copper Buildings Secure $660 Million in Financing
The developers of a pair of luxury rental buildings on the East Side of Manhattan have secured $660 million in financing.
JDS Development Group and its partner, Largo Investments, closed Thursday on a deal that will allow them to retire a previous $390 million construction loan, repay equity provided for construction costs and provide financial flexibility for the 761-unit towers at 626 First Avenue.
American International Group Inc. provided a $500 million senior loan, and SL Green Realty Corp. and a fund managed by Apollo Global Management LLC provided a $160 million mezzanine loan. The floating-rate loan has a three-year term.
“This deal is representative of the appetite investors have for the product that fulfills the huge demand for high-quality multifamily assets in Manhattan,” said Aaron Appel, a JLL managing director who was on the team that brokered the financing for the partners.
The American Copper Buildings, designed by ShoP Architects, sit along the East River and are joined by a sky bridge. The towers will have 601 market-rate units and 160 affordable units as well as 13,441 square feet of ground floor retail space.
The skybridge will feature an indoor lap pool and lounge. About 25% of the apartments will be available for occupancy in January, with the remainder available over the next four to six months, Mr. Appel said.
By Keiko Morris, The Wall Street Journal
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