Taconic, Nuveen Land $79M Refinance for Upper East Side Project
Ares Management provided the bridge loan for the joint venture’s project at 309 East 94th Street and 324 East 95th Street. Its eventual use is still being evaluated by the partnership.
“This capital strategically positions the project to move into predevelopment,” Chris Balestra, president and CIO of Taconic Partners, said in a statement. “As we continue to explore opportunities for development that meet New York’s market and community needs, the bridge financing allows us to execute plans for an exceedingly well-situated Upper East Side property.”
Originally built in 1927 as a manufacturing building, the property was renovated and repositioned in the 1980s to become a loft-style office building with garage space. Located across two adjacent parcels, the current development site comprises 87,722 gross square feet featuring a renovated five-story, loft-style office structure with a connected two-story garage on 94th Street and an auto shop on 95th Street.
Both 309 East 94th and 324 East 95th are zoned C8-4, which allows retail, department automotive showrooms, car washes, warehouses and other commercial uses. The total lot size from both parcels spans 27,695 square feet and the development partners are exploring options for the property, which can be expanded to 164,000 to 205,000 square feet depending on usage.
“We are pleased to support the advancement of this project,” Bryan Donohoe, partner and co-head of U.S. real estate at Ares, said in a statement. “Taconic and Nuveen’s experience along with the location and multiple potential uses of the property position this as a strategic investment with significant growth potential.”
Nuveen and Taconic Partners have collaborated on New York City development projects since 2015 and collectively invested more than $1.5 billion across more than 1 million square feet in the Big Apple. The partners recently completed a $260 million fundraising round for their jointly sponsored value-add fund, New York City Property Fund II.
JLL Capital Markets‘ Evan Pariser, Aaron Niedermayer and Geoff Goldstein arranged the transaction.
“The prime Upper East Side location and zoning make this a dynamic development site, while the partners’ history of innovation and value creation further enhanced this attractive financing opportunity,” Niedermayer said in a statement.
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