Time Equities Gets $398M to Start Manhattan High-Rise
- Aug 29, 2013
Time Equities, of New York, has secured $288 million in construction financing for 50 West St., a 63-story residential condominium tower that will start construction in Lower Manhattan this fall, the developer announced Wednesday.
In addition to the construction financing, Time Equities’ joint venture partner Elliott Management, also of New York, is investing $110 million in equity. The project’s current estimated total cost, a Time Equities spokesperson told Commercial Property Executive, is about $500 million. Completion is planned for 2016.
The $288 million in construction financing is from a loan syndication effort led by PNC Bank. The lending group also includes Wells Fargo, M&T Bank, Union Bank, MidFirst Bank and Emigrant Bank.
Steve Kohn, Dave Karson and Chris Moyer of Cushman & Wakefield’s Equity, Debt & Structured Finance group arranged the joint venture between Time Equities and Elliott Management, a hedge investment fund led by Paul Singer with more than $21 billion under management. Elliott was advised by Aristone Realty Capital, L.L.C. in its capacity as co-investor and asset manager.
“[G]iven all that is happening in Lower Manhattan right now, we see demand for high-quality condos in the neighborhood continuing to grow in the years ahead,” Time Equities chairman Francis Greenburger said in a release.
“The neighborhood is developing rapidly, and our site provides incredible access to Battery Park City, Wall Street, waterfront parks, high-quality public schools and subways,” said Robert Singer, project director for Time Equities.
Information on how many condo units and how much retail space are planned isn’t available at this time, CPE was told, nor is the price range for the condo units. A hotel originally planned as part of the project was eliminated, because, the spokesperson told CPE, ‘Time Equities determined that the investment returns available on the … hotel component were not compelling enough to pursue.”
Time Equities has owned the site, between West and Washington streets, just south of Rector Street, since 1983. The company had planned to start construction on the project in 2008, but it was put on hold because of the financial crisis. The site was formerly occupied by commercial loft buildings that had been converted to residential use.
Helmut Jahn designed the tower’s façade, and Thomas Juul Hansen is the project’s interior designer. The Albanese Organization is the development manager, Hunter Roberts the construction manager, and SLCE the executive architect.
Time Equities is aiming for LEED Silver certification.
More unusually, in reaction to Hurricane Sandy, CPE was told, the developer added storm-protection measures that comply with FEMA guidelines: a raised ground floor elevation, relocated mechanical equipment and a natural gas–powered emergency generator on the fourth floor.