An Israeli insurance and finance group and a local developer are partnering with SL Green (SLG) Realty Corp. to build a tower for student housing at Pace University. Harel Insurance and Finance and the Naftali Group are developing a dormitory with the REIT at 33 Beekman Street.
The group plans to build an approximately 30-story building. It acquired the fee interest in the development site and once construction is complete Pace will receive a long-term ground lease condominium interest there for dorms and ground-floor retail.
“We’re delighted to have the opportunity to develop another attractive and modern dormitory building for Pace University, one of New York City’s outstanding educational institutions,” SL Green President Andrew Mathias said in a prepared statement about the deal. “Our recent experience with Pace on the 180 Broadway project has demonstrated that we can work well with the University’s administration to create a superior living experience for its students. And once again, we have chosen to continue our successful collaboration with the Harel, the fourth such venture we’ve done together.”
The 180 Broadway project Mr. Mathias mentioned is set to be completed in January 2013. It consists of a 609-bed dorm and retail condominium and was announced in early 2011.
Pace was represented in the deal by David Falk and Kyle Ciminelli from Newmark (NMRK) Grubb Knight Frank.
According to a spokesman for the firm, SNR Denton repped the lender, Landesbank Hessen-Thüringen Girozentrale, for the acquisition of the fee interest. Gary Goodman, a partner at the firm and head of its Real Estate Group, led the SNR Denton team.
A team from law firm Fried, Frank, Harris, Shriver & Jacobson represented the borrower and guarantor.