S3 Capital Provides $79M Construction Loan on Midtown South Apartment Tower
Chess Buildings will build a 28-story apartment building with 138 rental units
By Brian Pascus January 14, 2025 12:12 pm
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Developer Chess Buildings has secured $79 million in construction financing to build a 28-story, mixed-use multifamily property in Midtown Manhattan, Commercial Observer has learned.
S3 Capital provided the construction loan.
The project is one of the last deals in New York City financed under the expired 421a tax abatement, a statewide affordable housing subsidy that provides tax breaks for buildings that reserve a percentage of units as affordable housing. The financing carries a 35-year tax abatement.
Located at 250 West 49th Street — between Seventh and Eighth avenues within the Theater District near Times Square — the upcoming residential project will feature 138 rental units and roughly 2,500 square feet of ground-floor retail space. Amenities will include an outdoor cinema, a rooftop lounge, a tenant lounge with a billiards table, a fitness center, a golf simulator and a zen garden.
Robert Schwartz, co-founder and managing principal at S3 Capital, noted in a statement that his firm has previously partnered with Chess Buildings on other construction projects, notably The Arches in Mott Haven, a 430-unit, 25-story rental building in the Bronx.
“We are thrilled to once again collaborate with them to bring an exceptional new development to life in the iconic Midtown West neighborhood,” said Schwartz. “This project exemplifies S3 Capital’s ongoing commitment to supporting transformative developments led by proven, experienced sponsors.”
Chess Builders did not respond to requests for comment.
Brian Pascus can be reached at bpascus@commercialobserver.com
