Landesbank Provides $110M for Queens, NY M-F Project
- Oct 04, 2013
World-Wide Group has obtained $110 million in construction financing for a 421-unit luxury multi-family tower in Long Island City, in the New York City borough of Queens. The real estate development company’s project attracted the attention of Germany’s Landesbank Hessen-Thüringen Girozentrale, which came through with the loan for the $157 million endeavor.
“Landesbank Hessen-Thüringen Girozentrale has a longstanding relationship with World-Wide Group, so they had a lot of comfort in their development product,” Laurie Grasso, real estate partner with law firm Hunton & Williams L.L.P., told Commercial Property Executive. Hunton & Williams advised World-Wide in the transaction.
The 21-story high-rise featuring premier residences and 8,700 square feet of ground-level retail space will sprout up at 41-42 24th St., a site that had been home to another developer’s shelved project before World-Wide acquired the property in 2012. World-Wide is partnering with Rabina Properties and Cammeby’s International Group on the development.
The undertaking is timely, as the cry for apartments in Queens is on the verge of becoming deafening. Of the 1,920 units delivered in the metropolitan New York City market over the last five quarters, only 2 percent were in Queens, according to a mid-year report by Marcus & Millichap Real Estate Investment Services. The low level of development resulted in a drop in the vacancy rate to just 1.2 percent in the borough.
Across the country, the apartment sector is still going strong. Thus, while World-Wide and Landesbank have a history, the list of lenders that wouldn’t be interested in a premier multi-family development like 41-42 24th would probably be a very short one. As Grasso noted, “The lending market is currently robust for experienced developers creating new residential rental projects.”