NYC Mixed-Use Development Secures $190M Loan

Trinity Place Holdings has begun construction on 77 Greenwich St., which will include luxury condos and a long-awaited public school for Lower Manhattan.
Trinity Place Holdings Greenwich rendering
A rendering of 77 Greenwich St., to be developed by Trinity Place Holdings

Trinity Place Holdings Inc. (TPHS) has secured $189.5 million in construction financing to develop 77 Greenwich St., a 300,000-square-foot mixed-use property in Manhattan.

When completed, the development will consist of 90 luxury condominiums and a public elementary school. The project’s hard costs are 93 percent “bought out” and are managed under a gross maximum price construction contract.

The loan has a four-year term with one extension option. In addition to equity already funded by TPHS, future contributions by the New York City School Construction Authority (SCA) is expected to cover other future costs of the project.

The FXFOWLE-designed project also entails the adaptive reuse of the landmarked Robert and Anne Dickey House, 7,500 square feet of street-level retail space and the construction of a new handicapped-accessible subway entrance on Trinity Place.

As part of the deal, TPHS and SCA entered into an agreement that provides for the design and construction of the core and shell of a pre-kindergarten through 5th grade school that will occupy the first eight floors of the project. SCA will acquire a condominium interest in the project and, at substantial completion, will finish the interior construction.

The condos and the subway improvements are expected to be completed by the end of 2020.

CBRE’s Mark Fisher, Shawn Rosenthal and Alexander Furnary served as exclusive brokers on the financing transaction. Newmark Knight Frank’s Justin DiMare represented seller, while NKF’s Howard Kessler represented the purchaser on the SCA land purchase transaction.

James P. Godman, Daniel Berman and Dennis Heyman of Kramer Levin Naftalis & Frankel LLP represented TPHS on the deal, while Day Pitney LLP’s Michael Byrne, Marie Caroline Bertrand and Rosemary G. Ayers represented the lender.

Mixed-Use in Manhattan

By all accounts, mixed-use developments are highly in demand throughout New York City. In September, SL Green Realty Corp. teamed with RXR Realty to acquire a 48.7 percent interest in Worldwide Plaza, a 2 million-square-foot asset in Midtown Manhattan. And earlier this month, Jamestown LP acquired a Class A mixed-use office and retail building in the Bronx for approximately $115 million.

Condo development is also holding steady as we head to 2018. According to a recent report from CityRealty, the average price for a NYC condo was $3.1 million this year, with new development condos averaging approximately $4.7 million.

Image via Business Wire