HFZ Bags $1B Loan for Mammoth NYC Project
- May 12, 2017
By Barbra Murray, Contributing Editor
HFZ Capital Group has everything it needs to keep moving forward with the development of The Eleventh, a 900,000-square-foot luxury mixed-use destination that will take its place on the skyline of West Chelsea in downtown Manhattan. The real estate development and investment company just landed construction financing for the roughly $2 billion project. An article in The Real Deal identified the lender as the U.K.’s Children’s Investment Fund, and put the loan amount at $1.25 billion.
The Eleventh will take shape at 76 11th Ave., occupying a full block, with the High Line on one side and the Hudson River on the other. Designed by architectural firm Bjarke Ingels Group, the project will consist of two towers appearing to be in a semi-twist, on the verge of wrapping around each other. The 34-story high-rise to the west will house the majority of the 240 residential condominiums, while the 25-story building to the east will be home to the 137-room Six Senses New York hotel and additional residences. The development will also feature 90,000 square feet of retail space and below-grade parking.
HFZ is not commenting beyond the press release, which includes a prepared statement by Ziel Feldman, founder of HFZ Capital, remarking that the “lender shares our vision for The Eleventh and the unique role it will play in contributing to the transformation and elevation of Manhattan’s far west side.”
This isn’t the first time HFZ was able to reel in big-ticket financing for The Eleventh. In 2015, the company turned to a consortium of lenders involving JPMorgan, BlackRock and SL Green Realty for approximately $1 billion of debt and equity financing for the $870 million purchase of the project site and the funding of pre-development activities. Omnibuild is serving as general contractor for The Eleventh, and expects to complete construction in 2019.
Mixed-use projects in Manhattan are a lender favorite these days. Per a report by commercial real estate financial data provider CrediFi, office and mixed-use properties dominated the top loans in the fourth quarter of 2016.