SMBC, Oaktree Refi Chelsea Project With $211M Loan

MaryAnne Gilmartin’s MAG Partners has sealed a $210.8 million loan to refinance a residential development in Manhattan’s West Chelsea neighborhood, Commercial Observer can first report.

Sumitomo Mitsui Banking Corporation (SMBC) supplied a senior loan, while funds managed by Oaktree Capital Management provided mezzanine debt for MAG Partners’ 2023-built complex known as the Ruby, sources familiar with the deal told CO. MAG sponsors the project as part of a joint venture with Safanad, Blue Owl Capital and Qualitas.

The floating-rate transaction retires debt from a $196 million refi provided by Tyko Capital for the 480-unit mixed-income multifamily development while positioning it for long-term stability, according to MAG. 

CBRE negotiated the financing with a team consisting of Tom Rugg, Tom Traynor, Peter  Griesinger, Arman Samouk and Kayla Kaloostian. 

Located at 243 West 28th Street across from the Fashion Institute of Technology between Seventh and Eighth  Avenues, the Ruby comprises two residential towers with 30 percent of the units designated as affordable housing. The property also houses 8,500 square feet of ground-floor retail with tenants that include Urbana Café & Gallery, Pet Evolution and wellness company Saint. 

Jeff Rosen, managing principal and chief investment officer at MAG Partners, said the deal generated robust lender demand, with a number of debt funds and life insurance companies bidding.

“This refinancing reflects the continued strength of the New York City multifamily market and the performance of Ruby specifically,” Rosen said in a statement. 

SMBC and Oaktree did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.