Essex Crossing Developers Seal First Permanent Loan With $17M in Financing
The developers of Essex Crossing, a sprawling megaproject on the Lower East Side, have nailed down their first permanent loan for 175 Delancey Street, an all-affordable senior housing development between Clinton and Attorney Streets, Commercial Observer has learned.
Delancey Street Associates—which includes BFC Partners, L+M Development Partners, Taconic Investment Partners, Goldman Sachs Urban Investment Group and Prusik Group—have secured financing to pay down a $16.9 million construction loan, according to a spokesman for the developers. The New York City Retirement System is providing a $4.9 million loan, and Wells Fargo is making a $12.2 million Low Income Housing Tax Credit equity investment to cover the remaining balance.
“We’re pleased to have secured our first permanent loan conversion thanks to the full lease-up of 175 Delancey Street,” said Isaac Henderson, a director at L+M and a project manager on Essex Crossing. “It’s been incredibly gratifying to deliver 99 units of deeply affordable housing at the Frances Goldin Apartments, including for six former Seward Park Urban Renewal Area site tenants. None of that would’ve been possible without our partners at Wells Fargo.”
The 175,000-square-foot, 15-story building at 175 Delancey includes 99 affordable apartments for seniors, 100,000 square feet of community facility space and 4,500 square feet of retail. Residents have moved into all of the apartments in the building, which opened in January. The community space hosts a senior center and cafe operated by nonprofit Grand Street Settlement and a 55,000-square-foot medical facility for NYU Langone Medical Center. When Essex Crossing is complete, the 1.9-million-square-foot development will encompass 1,079 units of housing, half of which will rent for below-market rates, and a 150,000-square-foot marketplace complex known as The Market Line. The development will also include a Trader Joe’s, Target, Regal Cinemas and a public park, all of which are set to open this summer.
“Essex Crossing’s Site 6 will address one of the most urgent needs in New York City – affordable housing for seniors – in addition to bringing more healthcare and community facilities to the neighborhood,” said Duane Mutti, the senior vice president for community lending and investment at Wells Fargo. “Wells Fargo has been deeply committed to supporting Essex Crossing through its stages of development, and closing on the first permanent loan at Essex Crossing marks a significant milestone for the project. We have now provided more than $400 million in financing for the Essex Crossing sites.”