Manhattan Residential Towers Project Secures $985M Loan
The deal marks what is believed to be the largest construction loan for a Manhattan residential project since prior to the COVID-19 pandemic.
By Andrew Coen July 16, 2024 5:59 pm
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Atlas Capital Group has secured nearly $1 billion in construction financing to build a large-scale residential complex in Manhattan’s Hudson Square neighborhood, according to a source with knowledge of the deal.
Cale Street Partners and Farallon Capital Management provided the loan of $985 million for two residential towers at 80 Clarkson Street that Atlas is developing with joint venture partners Zeckendorf Development and Baupost Group, according to the New York Post, which first reported the news. The deal marks what is believed to be the largest construction loan for a Manhattan residential project since prior to the COVID-19 pandemic in 2020, the Post said.
Newmark (NMRK) arranged the transaction with a team led by Jordan Roeschlaub.
Sponsors behind the $1.25 billion development previously secured a $322 million loan from Blackstone to jump-start the project on a previously vacant 1.3-acre site next to St. John’s Terminal, the Post reported at the time. The project is slated for completion in 2027.
The loan covers two towers the sponsorship is building totaling 101 condominium units at 80 Clarkson, the source said. The overall development site will also include 175 affordable senior apartments not covered by the loan.
Representatives at Atlas Capital Group, Cale Street Partners and Farallon Capital Management did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
