Affinius, Kennedy Wilson, InterVest Lend $275M on Midtown South Resi Tower Build

A joint venture between Sioni Group and AB & Sons has secured $275 million of construction financing to build a long-sought residential tower in Midtown South.

Affinius Capital, Kennedy Wilson and InterVest Capital Partners provided the loan for the sponsorship’s planned 72-story multifamily and condo development at 986 Sixth Avenue, according to a source familiar with the deal. The 311-unit building slated for completion in 2026 will consist of 284 apartments and 27 condominiums. 

“We are thrilled to participate in this skyline-defining project and to further strengthen our relationship with Sioni Group and AB & Sons, experienced New York City-based developers, owners and operators,” Perry Katz, senior vice president at Affinius Capital, said in a statement. 

Galaxy Capital’s Henry Bodek arranged the transaction.

The Real Deal first reported the loan, which was closed almost three years after project sponsors nearly obtained $350 million of construction financing before rising interest rates delayed the deal. 

Ray Yadidi’s Sioni Group and AB & Sons, which is run by Isaac Chetrit and Eli Chetrit, started purchasing properties for the Midtown South development in 2007, including acquiring a vacant hotel for $54.3 million and a 21-story office building for $49 million near the site, according to TRD.

“We were very pleased to partner again with both Affinius and Intervest on this transaction, each of whom we have partnered with either as co-lender or direct borrower previously,” said Patrick Crandall, senior managing director at Kennedy Wilson.

Officials at Affinius Capital, InterVest Capital, Sioni Group and AB & Sons did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com