PCCP, LLC PROVIDES $168.5 MILLION SENIOR LOAN FOR REFINANCE OF 280-UNIT LUXURY APARTMENT BUILDING IN NEW YORK, NY
New York, NY, August 6, 2018 – PCCP, LLC announced today that it has issued a $168.5 million senior loan for the refinance of a 14-story, 280-unit luxury apartment building located at 535 West 43rd Street in New York, NY. The borrower, a joint venture of the Patrinely Group, USAA Real Estate, and DHA Capital, completed development of the property in mid-2016. Current occupancy at the property is approximately 93 percent. Cushman & Wakefield’s Steve Kohn, Gideon Gil, Chris Moyer, and Noble Carpenter III arranged the financing on behalf of the borrower.
“PCCP is pleased to provide this loan to an experienced borrower group on a newly constructed, high quality asset in one of the top multifamily markets in the country. The loan provides capital to pay off the borrower’s existing construction loan, while also providing time to stabilize operations at that asset,” said Ron Bonneau, a senior vice president with PCCP.
Situated on a .63-acre midblock parcel on West 43rd Street between 10th and 11th Avenues in Manhattan’s Hell’s Kitchen submarket on the northern edge of the Hudson Yards submarket, 535 West 43rd Street totals 280 units across two towers including 218 market rate units and 62 permanently affordable units. The property’s unit mix consists of 112 studios, 114 one-bedroom units, and 54 two-bedroom units. The towers are connected by a courtyard garden and glass-enclosed walkway bridge. The property features over 28,000 square feet of amenity space including two landscaped rooftop gardens, a fitness center and yoga area, game room, media room, club lounge, communal kitchen/coffee bar and a children’s playroom. Interior units feature open floor plans with integrated kitchens, 9- to 10-foot ceilings throughout, floor-to-ceiling windows, stainless steel hardware/appliances, washers/dryers and industrial light fixtures.
Manhattan’s Hell’s Kitchen submarket, which has historically consisted of old warehouses and small pre-war walk-up multifamily properties, has experienced an influx of development in recent years. This influx of development has been led by the rezoning of the Hudson Rail Yards, which is located south of 535 West 43rd Street and bound by 30th and 33rd streets and 10th and 12th avenues. Led by 10 million square feet of office development that has either recently completed or is under construction, Manhattan’s “Far West Side” continues to evolve and has transformed into a 24-hour live, work, play community.
“The asset is located in the Midtown West submarket, which is seeing a significant amount of development and growth which is primarily spearheaded by the Hudson Yards development. We perceive that its location will benefit from the westward shift in renters, given the maturing Hudson Yards submarket,” said John Randall, a partner with PCCP.
535 West 43rd Street is walkable to the traditional office locations in Midtown West / Times Square and is within a 10-minute walk to the emerging Hudson Yards area. The property has good access to transportation including the commuter rail service, 14 Manhattan subway/bus routes, the West Side Highway, Lincoln Tunnel and ferries along the Hudson River. The property is within walking distance of three major public transportation hubs: Port Authority, Times Square, and Hudson Yards. The project’s immediate area offers tenants access to daily necessities such as banks, supermarkets, dry cleaners, and drug stores. Specifically, within two blocks of the property are several fast-casual restaurants, nail and hair salons, a bank, dry cleaner, deli, and a CVS Pharmacy.
The joint venture for 535 West 43rd Street is led by the Patrinely Group, a vertically-integrated investment, development, and management firm active nationally since 1983. Patrinely owns a diverse real estate portfolio spanning 15 states and includes commercial office, luxury residential, mixed-use, high-rise condominiums, hospitality, and entertainment venues. The firm is focused on rental properties targeted in major markets, including New York, Washington D.C., Seattle, Los Angeles, and Denver.